VIS and NXP to build a new 300mm JV fab
Vanguard International Semiconductor (VIS) and NXP Semiconductors have secured the necessary approvals and injected capital to establish their joint venture VisionPower Semiconductor Manufacturing Company (VSMC). The new company will now proceed with the planned construction its first 300mm wafer manufacturing facility.
On June 5 of this year, VIS and NXP announced intentions to form the VSMC joint venture in Singapore to develop a 300mm wafer fab with a total investment of approximately USD 7.8 billion.
“We express our gratitude to the governments and regulatory authorities of Taiwan, Singapore, and other countries for their strong support, which enabled us to obtain the necessary approvals and proceed with this significant investment as scheduled,” says VIS Chairman Leuh Fang, in a press release. “VSMC’s first 300mm fab is a concrete manifestation of VIS’ commitment to meeting customer demands, expanding our manufacturing capacity, and diversifying our global manufacturing bases.”
The plan for VSMC is to start the construction on its initial phase of the wafer fab during the second half of this year – and if everything goes as planned production is slated to start in 2027. Following a successful ramp of the initial phase, a second phase will be considered and developed, pending commitments by VIS and NXP.
"We thank all the relevant government agencies for moving with speed to support the VSMC joint venture project,” said NXP President and CEO Kurt Sievers. “The VSMC fab perfectly aligns with our hybrid manufacturing strategy and helps ensure we have a manufacturing base which delivers competitive cost, supply control and geographic resilience to support our long-term growth objectives.”
The 300mm fab will support 130nm to 40nm mixed-signal, power management and analog products, targeting the automotive, industrial, consumer and mobile end markets. The related technology license and technology transfer will be from TSMC, and a Technology License Agreement with TSMC has been signed.
With a projected production of 55,000 300mm wafers per month by 2029, the joint venture is set to create around 1,500 jobs while also contributing to the growth of the upstream and downstream supply chains.
