The formation of VisionPower Semiconductor Manufacturing Company (“VSMC”), a manufacturing joint venture between Vanguard International Semiconductor Corporation(VIS) and NXP Semiconductors to built a 300mm semiconductor wafer production facility, is announced.
VSMC will construct a new 300mm semiconductor wafer production facility in Singapore. Targeting the automotive, industrial, consumer, and mobile end industries, the joint venture fab will handle analog, power management, and mixed-signal devices with a wavelength range of 130 nm to 40 nm.
It is intended for TSMC to license and transmit the underlying process technology to the joint venture.
If all necessary regulatory licenses are obtained, Vanguard International Semiconductor Corporation and NXP plans to start building the first phase of the 300mm semiconductor wafer production facility in the second half of 2024 and start offering initial production to customers in 2027.
Achieving guaranteed proportionate capacity to both equity partners, the joint venture will function as a stand-alone commercial foundry provider, with an anticipated monthly production of 55,000 300mm wafers by 2029. In Singapore, the joint venture is expected to generate 1,500 new employment.
After the first phase ramps up successfully, a second phase will be explored and created subject to commitments from both equity partners.
It is estimated that the first build out will cost $7.8 billion in total. In the joint venture, VIS will provide $2.4 billion, or 60% of the equity position, while NXP will contribute $1.6 billion, or the remaining 40%.
An further $1.9 billion will be provided by VIS and NXP, and it will be used to maintain the infrastructure for long-term capacity. Third parties will contribute the remaining funds, including loans, to the joint venture. VIS will oversee the fab’s operations.
“VIS is pleased to work with leading global semiconductor company NXP to build VSMC 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,” said VIS Chairman Leuh Fang. “Adhering to the vision of business sustainability, this fab will be built adopting the Singapore Green Mark standards and implementing rigorous green manufacturing measures. We will continue to create great value for our stakeholders and look forward to working with customers, suppliers, local talents, and government to continuously contribute to Singapore and the global semiconductor ecosystem.”
“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,” said 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 for VSMC we intend to create with VIS perfectly aligns within NXP’s hybrid manufacturing strategy.”
Further info: www.nxp.com
