TSMC Affiliate Vanguard Partners with NXP for US$7.8bn Chip Facility in Singapore

• Sommana Yan
• 22 June 2024
• Uncategorized
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Vanguard International Semiconductor, an affiliate of TSMC, will invest US$7.8 billion in partnership with European chipmaker NXP to construct its most advanced production facility in Singapore, targeting the rising demand for regional chip manufacturing and supply chain resilience. This significant venture, announced on Wednesday, underscores the strategic importance of localised semiconductor production in the current global landscape, according to Asia.nikkei on 5 June 2024.

The joint-venture chip plant will focus on producing power management and analogue chips for various markets, including automotive, industrial, consumer, and mobile devices. Taiwan Semiconductor Manufacturing Co. (TSMC), Vanguard’s largest shareholder, will provide the necessary production technologies and dispatch specialists to assist with the construction. The initial phase of the wafer fabrication plant is set to commence in the second half of this year, pending regulatory approvals, with the first products expected to be available to customers by 2027.

Previously, Vanguard Chairman Leuh Fang highlighted the expansion’s focus on meeting the increasing demand for power management and power supply chips. NXP, a crucial customer for both Vanguard and TSMC, has also invested in TSMC’s first European chip plant in Dresden, Germany, along with Bosch and Infineon.

Kurt Sievers, NXP’s president and CEO, stated, “NXP continues to take proactive actions to ensure it has a manufacturing base which provides competitive cost, supply control and geographic resilience to support our long-term growth objectives.”

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