Vanguard and NXP Semiconductor to Establish Fabrication Unit in Singapore

Taiwan-based Vanguard International Semiconductor Corp. (VIS) announced a joint venture with Netherlands-based NXP Semiconductors N.V. to establish a 12-inch wafer fab in Singapore. The new entity, VisionPower Semiconductor Manufacturing Company Pte Ltd. (VSMC), will involve a total investment of US$7.8 billion. VIS will contribute US$2.4 billion for a 60 percent stake, while NXP will invest US$1.6 billion for a 40 percent share.

Both companies have agreed to an additional US$1.9 billion investment to support long-term capacity infrastructure, with the remaining funds to be sourced from third-party loans. VIS will operate the fab, which is set to begin construction in the second half of this year, following regulatory approval. Mass production is expected to commence in 2027, utilizing mature 130-nanometer to 40-nanometer technologies licensed and transferred from Taiwan Semiconductor Manufacturing Co. (TSMC). TSMC, the world's largest contract chipmaker, holds a 28.32 percent stake in VIS.

The fab will produce chips for mixed-signal, power management, and analog products, targeting automotive, industrial, consumer, and mobile markets. VSMC will operate as an independent commercial foundry, providing proportional capacity to both equity partners. Monthly output is projected to reach 55,000 12-inch wafers by 2029. This investment is expected to create approximately 1,500 new jobs in Singapore.

VIS Chairman Fang Leuh expressed enthusiasm for partnering with NXP, emphasizing the alignment with VIS' long-term development strategies and commitment to customer demands and manufacturing diversification. The fab will adhere to Singapore Green Mark standards and implement rigorous green manufacturing practices.

NXP President and CEO Kurt Sievers highlighted the strategic importance of the joint venture, which aligns with NXP’s hybrid manufacturing strategy and aims to ensure competitive cost, supply control, and geographic resilience for long-term growth. He praised VIS's capability in building and operating a 300mm analog mixed-signal fab alongside NXP. Following the commencement of mass production, the partners may consider constructing a second fab.