NXP Semiconductors and a subsidiary of Taiwan Semiconductor have broken ground on a joint venture chip factory in Singapore

According to Zhitong Finance, NXP Semiconductors (NXPI.US) and the TSMC-supported World Advanced Integrated Circuit Co., Ltd. (VIS) announced on Wednesday that their joint venture, VisionPower Semiconductor Manufacturing Company (VSMC), has broken ground on an $7.8 billion factory in Singapore and is considering expansion to further diversify the global semiconductor supply chain. The two companies stated in a press release that initial production at the VSMC wafer fab is expected to begin in 2027. They added that the second phase of the factory "will be considered and developed based on the future business developments of World Advanced and NXP."

Leuh Fang, Chairman of VSMC and VIS, stated, "We are proud to announce the groundbreaking of our first 12-inch wafer fab in Singapore, which will adhere to the company's core operating philosophy of providing specialized IC foundry services and lay the foundation for our future development."

Kurt Sievers, President and CEO of NXP, added, "NXP has decades of successful semiconductor manufacturing operations in Singapore, and the new VSMC wafer fab aligns perfectly with our differentiated mixed manufacturing strategy. This new wafer fab will support NXP's supply control and geographic flexibility growth plans at competitive costs."

The two companies also noted that the factory is expected to reach a monthly production capacity of 55,000 300mm wafers by 2029 and create 1,500 jobs. In June of this year, VIS and NXP announced plans to establish the VSMC joint venture in Singapore. The joint venture was established in September