NXP Semiconductors and Vanguard International, which are supported by TSMC, will form a cooperative venture to construct a US$ 7.8 billion silicon wafer manufacturing facility in Singapore to serve the automotive, industrial, customer, and mobile close areas, according to a statement released on Wednesday ( June 5 ).
Vanguard does spend US$ 2.4 billion with a 60 per cent interest in the joint venture, while NXP will spend US$ 1.6 billion and keep 40 per cent of the venture, the statement said. Additionally, the companies will provide an extra US$ 1.9 billion to help the plant’s long-term viability.
The plant’s structure is anticipated to start in the second half of 2024, with customers able to start producing it in 2027, according to the firms. Following regulatory approvals, the first step will be constructed.
In light of rising tensions with China, TSMC has been in discussions with its clients about moving its manufacturing plants off Taiwan. However, for a move would not be possible, according to a senior business executive who spoke on Tuesday.
The combined walk, which will be operated by Vanguard, expects to make about 1, 500 work in Singapore, the statement said.
Earlier this year, United Microelectronics Corp ( UMC) said it will participate US$ 5 billion in a new chip factory in Singapore.