On March 14, 2024, a worker moved the wafer warehouse at the NXP Semiconductors computer chip manufacturing plant in Nijmegen, the Netherlands.
Piroschka Van De Wouw | Piroschka Van De Wouw Reuters
Taiwan Semiconductor Manufacturing Company-Supports Vanguard International Semiconductor and Dutch chip designers and manufacturers NXP Semiconductors A US$7.8 billion wafer manufacturing plant will be built in Singapore.
Vanguard will own 60% of the joint venture VisionPower Semiconductor Manufacturing Company, while NXP will hold 40%, according to one company. A joint statement was issued on Wednesday.
The VSMC plant will produce wafers for the automotive, industrial, consumer and mobile device markets, the companies said. TSMC will license the underlying manufacturing technology required for the project to VSMC.
The new factory is expected to start construction in the second half of 2024, with wafers to be shipped to customers in 2027, and is expected to create about 1,500 jobs in Singapore, the joint statement said.
Wafers are thin slices of semiconductor material used to make microchips.
The statement said that NXP will invest US$1.6 billion in the Singapore factory, while Pioneer Group plans to invest US$2.4 billion. The companies will provide an additional $1.9 billion to support the plant’s long-term capacity, with the remainder provided by third parties.
Kurt Sievers, president and CEO of NXP, said: “NXP will continue to take proactive actions to ensure that its manufacturing base can provide competitive costs, supply control and geographic flexibility to support our long-term growth goals.
Vanguard Group, created US$236 million acquisition of Singapore’s less advanced fab New York-based contract chipmaker GlobalFoundries said in 2019 that the new factory would help it diversify its manufacturing operations.
Singapore has attracted investment from many semiconductor companies with its friendly business environment.
The president of GlobalFoundries, which opened a $4 billion chip manufacturing plant in Singapore last year, praised the government’s industrial policies. Taiwan UMC in 2022 Invests US$5 billion in its Singapore microchip factory.
Neighboring Malaysia has also become a hotspot for semiconductor companies, with US chip giants Intel and GlobalFoundries investing in it. Other companies have also made plans to do business in the country.
TSMC, the world’s largest semiconductor foundry, has been building new factories in countries including Japan and the United States as its customers seek to reduce risks from Taiwan amid heightened tensions between the United States and China. Last year, NXP invested in TSMC The first wafer factory is located in Dresden, Germany, and is TSMC’s first factory in Europe.
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