Singapore $7.8B Semiconductor Plant to Develop Automotive, Industrial Chips

Singapore will be home to a new $7.8 billion semiconductor manufacturing plant that will produce hardware for the automotive, industrial and mobile markets.

The plant is part of a joint venture between Vanguard International Semiconductor Corporation (VIS) and NXP Semiconductors, creating a new wafer manufacturer called VisionPower Semiconductor Manufacturing Company.

Together, they plan to invest $7.8 billion in the joint venture, with VisionPower operating independently, supplying 12-inch chips.

Chip wafers manufactured at the new site will be licensed and transferred to Taiwan Semiconductor Manufacturing Company (TSMC), which partially owns VIS.

Construction will begin later this year and the first wave of hardware will be available in 2027.

“This project aligns with our long-term development strategies, demonstrating VIS’ commitment to meeting customer demands and diversifying our manufacturing capabilities,” said Leuh Fang, VIS’ chair. “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.”

VIS currently manufactures eight-inch wafer fabs, supplying memory chips, including DRAM hardware. The company already has a manufacturing presence in Singapore after purchasing a GlobalFoundries site for $236 million in 2019.

NXP, meanwhile, is a Dutch chip manufacturer that was spun out of Phillips. Qualcomm previously tried to acquire the company but the merger fell through in 2018.

The new joint-operated company is expected to produce 55,000 300 mm wafers per month once up and running. 

To fund the project, VIS will front $2.4 billion for 60% equity, while NXP will provide $1.6 billion for 40%. An additional $1.9 billion will be set aside for long-term capacity infrastructure

The companies suggest the project will support 1,500 jobs in Singapore. If it proves successful, a possible expansion or “second phase” will be considered.

“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’s [resident and CEO. “We believe VIS is well suited and fully understands the complexities involved in building and operating together with NXP, a 300 mm analog mixed signal fab. The joint venture partnership we intend to create with VIS perfectly aligns within NXP’s hybrid manufacturing strategy.”

This article first appeared in IoT World Today's sister publication AI Business.

VIS backer TSMC already has a $5 billion factory in Singapore which goes online this year. The company has been looking to expand its production efforts to keep up with increasing demand from its biggest clients, including Nvidia, while also trying to fend off increased competition.