VIS and NXP Semiconductors announced today plans to form a manufacturing joint venture, VisionPower Semiconductor Manufacturing Company Pte Ltd., to build a new 300mm semiconductor wafer fabrication facility in Singapore. The joint venture facility will support 130nm to 40nm mixed-signal, power management and analog products for the automotive, industrial, consumer and mobile end markets. The company plans to license and transfer the underlying process technology from TSMC to the joint venture.
The establishment of this joint venture marks the in-depth cooperation between the two companies in the field of semiconductor manufacturing. VIS will take a 60 percent stake in the joint venture and inject $2.4 billion into it, while NXP will hold a 40 percent stake and inject $1.6 billion. This partnership not only demonstrates the confidence of both companies in the future development of the semiconductor industry, but also reflects the strategic choice of Singapore as a high-tech manufacturing base.
The new fab will use advanced 300mm (12-inch) silicon wafer production technology, which is more advanced than VLAR's existing 8-inch silicon wafer production in Singapore. The adoption of 12-inch wafers will significantly increase the chip output of a single wafer and meet the growing global demand for high-performance chips.
The joint venture's VSMC fab is expected to begin mass production in 2027 and will primarily produce mixed-signal, power management and analog products from 130nm to 40nm. These products will serve the automotive, industrial, consumer and mobile end markets, further driving technological innovation and product upgrades in these fields.
Figure: VIS and NXP build a joint venture fab
In addition, the establishment of VSMC is expected to create about 1,500 jobs in Singapore, which is of great significance for local economic development and talent development. At the same time, the joint venture will operate as an independent commercial OEM supplier, providing a guaranteed proportional production capacity for both equity partners.
With the growing global demand for semiconductor chips and the pursuit of advanced technology and production capacity, this cooperation between VIS and NXP will undoubtedly strengthen Singapore's position in the global semiconductor industry. This investment will not only help meet market demand, but will also propel the industry to a higher level of technological advancement.
Leuh Fang, Chairman of VIS, said, "VIS is pleased to partner with NXP, the world's leading semiconductor company, on the construction of our first 300mm fab. This project is in line with our long-term growth strategy and demonstrates VIS' commitment to meeting customer needs and diversifying manufacturing capabilities. In line with the vision of business sustainability, the fab will be built using the Singapore Green Mark standard and implement strict green manufacturing practices. We will continue to create great value for our stakeholders and look forward to working with our customers, suppliers, local talent and government to continuously contribute to the semiconductor ecosystem in Singapore and globally."
Kurt Sievers, President and CEO of NXP, said, "NXP continues to take proactive steps to ensure that its manufacturing base is cost-competitive, supply controlled and geographically resilient to support our long-term growth objectives. We believe VIS is a good fit and fully understands the complexities involved in building and operating a 300mm analog mixed-signal factory with NXP. The joint venture partnership we intend to enter into with VIS is fully aligned with NXP's hybrid manufacturing strategy. ”
