NXP, TSMC-backed Vanguard to invest US$7.8 billion in Singapore wafer manufacturing plant
SINGAPORE: NXP Semiconductors and TSMC-backed Vanguard International will enter into a joint venture to build a US$7.8 billion semiconductor wafer manufacturing plant in Singapore to cater to the automotive, industrial, consumer and mobile end markets, the firms said in a statement on Wednesday (Jun 5).
Vanguard will invest US$2.4 billion with a 60 per cent stake in the joint venture, while NXP will invest US$1.6 billion and hold 40 per cent of the venture, the statement said. The firms will also provide an additional US$1.9 billion to support the long-term capacity of the plant.
Construction of the plant is expected to begin in the second-half of 2024, with initial production available to customers in 2027, the firms said. Construction of the initial phase will take place after regulatory approvals.
TSMC has held talks with its customers about whether to move its fabrication plants off Taiwan amid increased tensions with China, although such a move would be impossible, a senior company executive said on Tuesday.
The joint venture, which will be operated by Vanguard, expects to create about 1,500 jobs in Singapore, the statement said.
Earlier this year, United Microelectronics Corp (UMC) said it will invest US$5 billion in a new microchip factory in Singapore.
