NXP Semiconductors and Vanguard International Semiconductor have partnered to form a joint venture (JV) named VisionPower Semiconductor Manufacturing Company to build a USD7.8 billion 300 mm semiconductor wafer manufacturing facility in Singapore. Vanguard will hold a 60 per cent stake by investing USD2.4 billion, meanwhile, NXP will invest USD1.6 billion for a 40 per cent stake. An additional USD1.9 billion will be contributed for long-term capacity infrastructure, with the remaining funds sourced from third-party loans.
The facility is expected to start construction in the second half of 2024 and aims to commence production by 2027. It will support 130 nm to 40 nm mixed-signal, power management, and analogue products, catering to the automotive, industrial, consumer, and mobile markets. Process technologies will be licensed and transferred from TSM to the JV. VisionPower will operate as an independent supplier, providing proportional capacity to both partners. By 2029, it is expected to produce 55,000 wafers per month.