TSMC affiliate Vanguard and Dutch firm NXP to build $7.8 billion Singapore wafer plant | MuaneToraya

6 days ago 14

A idiosyncratic moves a wafer slope astatine NXP semiconductors machine spot fabrication works successful Nijmegen, Netherlands March 14, 2024. 

Piroschka Van De Wouw | Reuters

Taiwan Semiconductor Manufacturing Co.-backed Vanguard International Semiconductor Corporation and Dutch chip decorator and shaper NXP Semiconductors volition physique a $7.8 cardinal wafer manufacturing works successful Singapore. 

Vanguard volition person 60% involvement successful the associated task — VisionPower Semiconductor Manufacturing Company — portion NXP volition clasp 40%, according to a joint connection released Wednesday.  

The VSMC works volition nutrient wafers for the automotive, industrial, user and mobile instrumentality markets, the companies said. TSMC volition licence the underlying manufacturing technologies required for the task to VSMC. 

The caller plant, whose operation is expected to commencement successful the 2nd fractional of 2024, with wafers to beryllium shipped to customers successful 2027, is expected to make astir 1,500 jobs successful Singapore, the associated connection said. 

Wafers are a bladed portion of semiconductor worldly utilized to marque microchips.

NXP volition put $1.6 cardinal successful the Singapore works portion Vanguard plans to put $2.4 billion, the connection said. The firms volition besides supply an further $1.9 cardinal to enactment the semipermanent capableness of the plant, with the remaining backing provided by 3rd parties.

Global organisation  of semiconductor proviso   volition  alteration   much  predictability - Strategist

"NXP continues to instrumentality proactive actions to guarantee it has a manufacturing basal which provides competitory cost, proviso control and geographic resilience to enactment our semipermanent maturation objectives," said Kurt Sievers, president and CEO astatine NXP.

Vanguard, which made a $236 cardinal acquisition of a little precocious wafer installation successful Singapore from New York-based declaration chipmaker GlobalFoundries successful 2019, said the caller works volition assistance it diversify its manufacturing operations.

Singapore has attracted investments from respective semiconductor companies, aided by its business-friendly environment.

GlobalFoundries opened a $4 cardinal spot fabrication works successful Singapore past year, with its president lauding the government's concern policies. In 2022 Taiwan's United Microelectronics Corp invested $5 cardinal into its Singapore microchip factory.

Neighbour Malaysia has also emerged arsenic a hotspot for semiconductor companies, with investments from American spot giants Intel and GlobalFoundries. Other companies person besides laid retired plans to commencement operations successful the country. 

TSMC, the world's largest semiconductor foundry, has been gathering caller plants successful countries similar Japan and the U.S. arsenic its customers question to de-risk from Taiwan amid intensifying U.S.-China tensions.  Last year, NXP invested successful TSMC's archetypal spot works successful Dresden, Germany, TSMC's archetypal works successful Europe.