VIS, NXP Announce Establishment of VSMC Joint Venture

Vanguard International Semiconductor Corporation (VIS) and NXP Semiconductors N.V. that they have obtained all necessary approvals from relevant authorities and injected capital to officially establish the VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC) joint venture. The company will now proceed with the planned construction of VSMC’s first 300mm wafer manufacturing facility.

VIS and NXP announced on June 5, 2024 plans to establish the VSMC joint venture in Singapore to build a 300mm wafer fab with a total investment of approximately $7.8 billion.
“We express our gratitude to the governments and regulatory authorities of Taiwan, Singapore, and other countries for their strong support, which enabled us to obtain the necessary approvals and proceed with this significant investment as scheduled,” said VIS chairman Leuh Fang. “VSMC’s first 300mm fab is a concrete manifestation of VIS’ commitment to meeting customer demands, expanding our manufacturing capacity, and diversifying our global manufacturing bases.”

“We thank all the relevant government agencies for moving with speed to support the VSMC joint venture project,” said Kurt Sievers, NXP president and CEO. “The VSMC fab perfectly aligns with our hybrid manufacturing strategy and helps ensure we have a manufacturing base which delivers competitive cost, supply control and geographic resilience to support our long-term growth objectives.”

VSMC will begin construction on its initial phase of the wafer fab in the second half of this year, with initial production slated to begin in 2027. Upon the successful ramp of the initial phase, a second phase will be considered and developed pending commitments by VIS and NXP.

With an expected output of 55,000 300mm wafers per month in 2029, the joint venture will create approximately 1,500 jobs while contributing to the development of the upstream and downstream supply chains, contributing to Singapore and the global semiconductor ecosystem.