VSMC and NXP Launch Works on Wafer Production Unit in Singapore

VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC), the joint venture (JV) formed in September 2024 by Vanguard International Semiconductor Corporation (VIS) and NXP Semiconductors N.V. on Wednesday launched the works for the JV’s new $7.8 billion 300mm wafer manufacturing facility in Tampines, Singapore.

Singapore’s Minister for Manpower and Second Minister for Trade and Industry Dr Tan See Leng, and other officials were present at the ground-breaking ceremony.

Construction of the VSMC fab is on-track, with initial production slated to begin in 2027. Upon the successful ramp of the initial phase, a second phase will be considered and developed pending future business development by VIS and NXP.

With an expected output of 55,000 300mm wafers per month in 2029, the joint venture will create approximately 1,500 jobs while contributing to the development of the upstream and downstream supply chains, contributing to Singapore and the global semiconductor ecosystem.

The fab will adopt a fully automated production model, integrating an Automated Material Handling System (AMHS) and comprehensive quality management through Artificial Intelligence applications. This will achieve fast, precise, high-yield, and high-quality manufacturing excellence, providing customers with competitive services and creating a smart fab in Singapore.

It may be recalled that VIS and NXP has announced established the JV in Singapore on September 4 after securing all necessary regulatory approvals and injected capital to officially establish the VSMC joint venture. The joint venture marks a significant step to establishing geographic resilience and accelerating Singapore’s semiconductor ecosystem.

Upholding Core Business Philosophy

VSMC and VIS Chairman Leuh Fang said that Singapore is renowned not only as Asia’s economic hub but also as a beacon of technological innovation. The ground-breaking of their first 12-inch fab in Singapore will uphold the company’s core business philosophy, provide specialty IC foundry services, and lay the foundation for our future development.

“Designed with modern technology and guided by green manufacturing principles, the fab reflects our firm commitment to the future. VSMC is dedicated to being a responsible corporate citizen, supporting economic growth while ensuring environmental sustainability,” Fang said.

NXP President and CEO Kurt Sievers said that his company enjoyed for decades of successful semiconductor manufacturing operations in Singapore, and the new facility is entirely aligned with their differentiated hybrid manufacturing strategy. This new fab will support NXP’s growth plans with supply control and geographic resilience at competitive cost, he said.

Cindy Koh, Executive Vice President, Singapore Economic Development Board, said that the project is a testament to Singapore’s attractiveness to global companies to site advanced manufacturing activities, and reinforces Singapore’s position as a critical global node in the semiconductor supply chain.

“The new fab will also facilitate business and partnership opportunities for local enterprises. Singapore will continue to invest in talent development, R&D, and decarbonisation solutions to enhance our competitiveness and strengthen Singapore’s semiconductor ecosystem,” she added.