[News] Semiconductor Industry in Singapore Boosted as VIS and NXP Collaborate to Build 12-Inch Fab | TrendForce Insights

In a strategic move to strengthen the semiconductor industry in Singapore, Taiwan-based contract chipmaker Vanguard International Semiconductor Corp. (VIS) has announced a partnership with Netherlands-based semiconductor supplier NXP Semiconductors N.V. to establish a joint venture, VisionPower Semiconductor Manufacturing Company (VSMC). This collaboration will result in the construction of a 12-inch fab in Singapore, with an estimated investment of USD 7.8 billion.

The decision to build the fab in Singapore is a testament to the country’s growing importance in the global semiconductor supply chain. With its well-established infrastructure and skilled workforce, Singapore has become a preferred location for major semiconductor companies looking to expand their operations.

The fab, which is expected to commence construction in the second half of 2024 pending regulatory approval, will utilize 130nm to 40nm technologies to produce mixed-signal, power management, and analog products for various markets including automotive, industrial, consumer electronics, and mobile terminals. The monthly 12-inch wafer capacity of the fab is projected to reach 55,000 pieces by 2029, creating around 1,500 jobs in Singapore.

This collaboration underscores the increasing concentration of the semiconductor industry in Singapore, with a growing number of companies setting up operations in the country. Industry experts believe that the establishment of the new fab is driven by the need to meet the demands of mature process customers, with VIS poised to take over TSMC’s customer orders.

Singapore’s status as a critical hub of the Asian semiconductor industry is further solidified by the presence of over 300 semiconductor-related companies in the country. The establishment of the 12-inch fab by VIS and NXP is expected to boost the country’s semiconductor manufacturing capabilities and enhance its position in the global market.

Overall, this partnership represents a significant milestone in the development of the semiconductor industry in Singapore, highlighting the country’s growing importance in the global semiconductor supply chain. With the construction of the 12-inch fab set to begin soon, Singapore is poised to further enhance its reputation as a key player in the semiconductor industry.