VIS and NXP to build a 300mm fab in Singapore

The joint-venture fab will support 130nm to 40nm mixed-signal, power management and analog products, targeting the automotive, industrial, consumer and mobile end markets. The underlying process technologies are planned to be licensed and transferred to the joint venture from TSMC, according to a press release.

The plan is to start construction of the initial phase of the wafer fab in the second half of 2024, with initial production targeted to be available to customers in 2027.

The total cost of the initial build-out is expected to be USD 7.8 billion. VIS will contribute USD 2.4 billion, representing a 60% equity stake in the joint venture, while NXP will contribute USD 1.6 billion for a 40% equity stake. Additionally, VIS and NXP have agreed to inject an extra USD 1.9 billion to support long-term capacity infrastructure. The remaining funding, including loans, will come from third-party sources.

VSMC will operate as an independent, commercial foundry supplier, providing proportional capacity to both equity partners, with an expected output of 55,000 300mm wafers per month in 2029. However, while VSMC will operate as an independent foundry –  the fab will be operated by VIS.

“VIS is pleased to work with leading global semiconductor company NXP to build our first 300mm fab. This project aligns with our long-term development strategies, demonstrating VIS’ commitment to meeting customer demands, and diversifying our manufacturing capabilities,” says VIS Chairman Leuh Fang, in the press release.

The joint venture project between VIS and NXP is expected to create approximately 1,500 jobs in Singapore. But that's not all, upon the successful ramp of the initial phase, a second phase will be considered and developed – pending commitments by both equity partners.

“NXP continues to take proactive actions to ensure it has a manufacturing base which provides competitive cost, supply control, and geographic resilience to support our long-term growth objectives,” says Kurt Sievers, NXP President and CEO. “We believe VIS is well suited and fully understands the complexities involved in building and operating together with NXP a 300mm analog mixed signal fab. The joint venture partnership we intend to create with VIS perfectly aligns within NXP’s hybrid manufacturing strategy.”