VIS and NXP Join Forces to Launch VSMC Semiconductor Venture
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VIS and NXP Establish VSMC Semiconductor Manufacturing Venture
Vanguard International Semiconductor Corporation (VIS, TPEx 5347) and NXP Semiconductors N.V. (NXP, NASDAQ: NXPI) have made a significant stride in the semiconductor industry by jointly establishing the VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC). This venture is officially kicked off after securing all necessary approvals from relevant authorities, allowing the companies to commence construction of VSMC's first 300mm wafer manufacturing facility.
Details of the VSMC Joint Venture
Previously announced in June, the VSMC project is located in Singapore and has attracted an impressive investment of approximately $7.8 billion. This enormous commitment underscores the companies' resolve to enhance their manufacturing capabilities and advance in a highly competitive market.
VIS Chairman Leuh Fang expressed gratitude for the support received from governments and regulatory agencies in Taiwan and Singapore. Fang emphasized that this venture reflects VIS’ dedication to meeting customer demands while expanding manufacturing capacity and diversifying manufacturing bases globally.
Strategic Alignment with NXP's Growth
NXP President and CEO Kurt Sievers also lauded the quick collaboration with government bodies, noting that the new fab is integral to NXP's hybrid manufacturing strategy. The establishment of this facility will bolster NXP's ability to maintain cost efficiency and supply chain control, crucial for long-term growth.
Construction Timeline and Production Goals
The initial phase of the wafer fab is expected to begin construction in the latter half of the year, with production slated to commence by 2027. As the project progresses and upon achieving production goals, there are plans for a second phase, contingent upon investments from both VIS and NXP. The upcoming fab will focus on mixed-signal, power management, and analog products, catering to the automotive, industrial, consumer, and mobile markets.
Impact on the Semiconductor Ecosystem
The technology and knowledge transfer will be supported by a technology licensing agreement with TSMC, enhancing VSMC's capability to meet market demands. By 2029, the facility aims to produce 55,000 300mm wafers monthly, providing approximately 1,500 job opportunities and contributing significantly to both Singapore's and the global semiconductor supply chain.
About Vanguard International Semiconductor Corporation
Founded in 1994, Vanguard International Semiconductor Corporation stands out as a premier specialty IC foundry service provider. Based in Taiwan's Hsinchu Science Park, VIS has consistently focused on technology development and efficiency in production to deliver top-tier services. Currently, VIS operates five 8-inch fabs across Taiwan and Singapore, with a monthly capacity that is projected to reach around 282,000 wafers in 2024.
About NXP Semiconductors N.V.
NXP Semiconductors is recognized for its innovative technology solutions across varying sectors such as automotive, industrial IoT, and mobile communications. With an extensive global presence in over 30 countries, NXP reported impressive revenue of $13.28 billion in 2023. Committed to crafting connected solutions that enhance safety and security worldwide, the company's future trajectory looks bright.
Contact Information
If you need further details, you can reach out to:
For VIS:
Amanda Huang
Vice President & CFO
Email: pr@vis.com.tw
Phone: 886-3-5770355
For NXP:
Jeff Palmer
Email: jeff.palmer@nxp.com
Phone: +1 408 205 0687
Frequently Asked Questions
What is the purpose of the VSMC joint venture?
The VSMC joint venture aims to establish a state-of-the-art semiconductor manufacturing facility focused on producing 300mm wafers.
What companies are involved in the VSMC joint venture?
The joint venture is a collaborative effort between Vanguard International Semiconductor Corporation (VIS) and NXP Semiconductors N.V.
How much is being invested in the VSMC project?
The total investment for the VSMC project is approximately $7.8 billion.
When is the production expected to begin at VSMC?
Initial production at VSMC is anticipated to start in 2027.
What markets will the VSMC facility serve?
The facility will cater to the automotive, industrial, consumer, and mobile end markets, supporting a range of products.
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