Dutch semiconductor group NXP has partnered with TSMC-backed Vanguard International Semiconductor (VIS) to create a $7.8 billion (€7.2 billion) Chip factory in Singapore.
The new factory will produce 300 mm silicon wafers for chips in the size range of 130 to 40 nanometers, which are used in industrial, automotive, consumer and mobile applications.
These chips are less advanced than those that TSMC itself makes in Taiwan. But the 300 million wafer capacity is a first for VIS, which currently produces 200mm wafers at its existing Singapore plant. The larger size of the 300 million wafers will allow it to produce a higher number of chips.
Construction of the factory is scheduled to begin in the second half of 2024, with production starting in 2027. The two companies expect to produce 55,000 wafers per month in 2029.
The <3 of EU technology
The latest gossip from the EU tech scene, a story from our wise old founder Boris and questionable AI art. Free in your inbox every week. Sign up now!
As part of the joint venture, VIS will invest $2.4 billion (€2.2 billion) for a 60% stake. NXP will hold 40% of the equity and support the project with $1.6 billion (1.5 billion €)The remaining funding comes from (unspecified) third-party donors.
“NXP continues to take proactive steps to ensure it has a manufacturing base that offers competitive costs, supply control and geographic resilience to support our long-term growth objectives,” Kurt Sievers, president and CEO of NXP, said in a statement.
Diversification of chip supply chains
Geographical resilience is critical to ensuring diversified supply chains, particularly in an increasingly unstable geopolitical landscape.
Tensions between the US and China and fears of a possible Chinese invasion of Taiwan have fueled concerns about the concentration of global chip production in just a few countries.
Taiwan is one of these countries and produces about 90 percent of the world's most advanced chips. China, on the other hand, dominates the market for low-end semiconductors.
Against this backdrop, Southeast Asian countries have emerged as an attractive investment alternative for American and European chipmakers. German company Infineon, US company Micron Technology and NXP have already established their presence in Singapore through a previous partnership with TSMC.
Comments are closed.