NXP, TSMC Affiliate to Invest $7.8B in Expanding Singapore Plant

In recognition of the need to diversify chip production in anticipation of rising US-Chinese tensions over technology, NXP Semiconductors and a Taiwan Semiconductor Manufacturing Co (TSMC) affiliate are talking about expanding their US$7.8 billion Singapore joint.

Tensions between the US and China escalated this week as Beijing banned the supply of certain vital commodities to the US in retaliation for the Biden administration's additional restrictions on Chinese access to foreign technologies.

The NXP chief reaffirmed that his company is growing geographically. According to Executive vice-president, Andy Micallef, the European chipmaker, a major manufacturer of networking and automotive semiconductors, is seeking to expand its supply chain in China, the largest EV and telecom market in the world.

Micallef said, “We are continuing to invest in Singapore. We are continuing on phase two of this when we get to 2030. Singapore is a very important site for NXP”

Device manufacturers are becoming increasingly concerned that rising tensions in the Taiwan Strait may cause supply disruptions for semiconductors needed for everything from electric cars to smartphones. The majority of chips produced worldwide are still made by Taiwanese companies, primarily TSMC.

Due to its closeness to important Asian consumer markets, comparatively low labor costs, and abundance of technological expertise, South-east Asia has become a prominent player in the manufacturing of technology.