The fab will support 130nm to 40nm mixed-signal, power management and analogue products, targeting the automotive, industrial, consumer and mobile end markets. The underlying process technologies will be licensed and transferred to the joint venture from TSMC.
The joint venture will begin construction of the initial phase of the wafer fab in the second half of 2024, pending regulatory approvals, with initial production available to customers during 2027.
The venture will operate as an independent, commercial foundry supplier, providing assured proportional capacity to both companies, with an expected output of 55,000 300mm wafers per month in 2029. The joint venture will create approximately 1,500 jobs in Singapore. Upon the successful ramp of the initial phase, a second phase will be considered and developed pending commitments by both equity partners.
The total cost of the initial build out is anticipated to be $7.8bn. VIS will inject $2.4bn representing a 60 percent equity position in the joint venture while NXP will inject $1.6bn for the remaining 40 percent equity position.
Both companies have agreed to contribute an additional $1.9bn to support the long-term capacity infrastructure. The remaining funding including loans will be provided by third parties to the joint venture. The fab will be operated by VIS.
“This project aligns with our long-term development strategies, demonstrating VIS’ commitment to meeting customer demands, and diversifying our manufacturing capabilities,” said VIS Chairman Leuh Fang. “Adhering to the vision of business sustainability, this fab will be built adopting the Singapore Green Mark standards and implementing rigorous green manufacturing measures.”
“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,” added Kurt Sievers, NXP President and CEO. “We believe VIS is well suited and fully understands the complexities involved in building and operating together with NXP a 300mm analogue mixed signal fab. The joint venture partnership we intend to create with VIS perfectly aligns within NXP’s hybrid manufacturing strategy.”
