VIS, NXP Semiconductors to establish joint venture to build 300mm fab

Vanguard International Semiconductor, or VIS, and NXP Semiconductors announce the plan to create a manufacturing joint-venture VisionPower Semiconductor Manufacturing, or VSMC, which will build a new 300mm semiconductor wafer manufacturing facility in Singapore. The joint-venture fab will support 130nm to 40nm mixed-signal, power management and analog products, targeting the automotive, industrial, consumer and mobile end markets. The underlying process technologies are planned to be licensed and transferred to the joint venture from TSMC. The joint venture will begin construction of the initial phase of the wafer fab in the second half of 2024, pending receipt of all required regulatory approvals, with initial production available to customers during 2027. The joint venture will operate as an independent, commercial foundry supplier, providing assured proportional capacity to both equity partners, with an expected output of 55,000 300mm wafers per month in 2029. The joint venture will create approximately 1,500 jobs in Singapore. Upon the successful ramp of the initial phase, a second phase will be considered and developed pending commitments by both equity partners. The total cost of the initial build out is anticipated to be $7.8B. VIS will inject $2.4B representing a 60% equity position in the joint venture and NXP will inject $1.6B for the remaining 40% equity position. VIS and NXP have agreed to contribute an additional $1.9B which will be utilized to support the long-term capacity infrastructure. The remaining funding including loans will be provided by third parties to the joint venture. The fab will be operated by VIS.