VIS and NXP Announce Establishment of VSMC Joint Venture

HSINCHU, Taiwan and EINDHOVEN, The Netherlands, Sept. 04, 2024 (GLOBE NEWSWIRE) -- Vanguard International Semiconductor Corporation (VIS, TPEx 5347) and NXP Semiconductors N.V. ((NXP, NASDAQ:NXPI) today announced that they have obtained all necessary approvals from relevant authorities and injected capital to officially establish the VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC) joint venture. The company will now proceed with the planned construction of VSMC's first 300mm wafer manufacturing facility.

VIS and NXP announced on June 5 this year plans to establish the VSMC joint venture in Singapore to build a 300mm wafer fab with a total investment of approximately $7.8 billion.

"We express our gratitude to the governments and regulatory authorities of Taiwan, Singapore, and other countries for their strong support, which enabled us to obtain the necessary approvals and proceed with this significant investment as scheduled," said VIS Chairman Leuh Fang. "VSMC's first 300mm fab is a concrete manifestation of VIS' commitment to meeting customer demands, expanding our manufacturing capacity, and diversifying our global manufacturing bases."

"We thank all the relevant government agencies for moving with speed to support the VSMC joint venture project," said NXP President and CEO Kurt Sievers. "The VSMC fab perfectly aligns with our hybrid manufacturing strategy and helps ensure we have a manufacturing base which delivers competitive cost, supply control and geographic resilience to support our long-term growth objectives."

VSMC will begin construction on its initial phase of the wafer fab in the second half of this year, with initial production slated to begin in 2027. Upon the successful ramp of the initial phase, a second phase will be considered and developed pending commitments by VIS and NXP. The 300mm fab will support 130nm to 40nm mixed-signal, power management and analog products, targeting the automotive, industrial, consumer and mobile end markets. The related technology license and technology transfer will be from TSMC, and a Technology License Agreement with TSMC has been signed. With an expected output of 55,000 300mm wafers per month in 2029, the joint venture will create approximately 1,500 jobs while contributing to the development of the upstream and downstream supply chains, contributing to Singapore and the global semiconductor ecosystem.

About VIS

Vanguard International Semiconductor Corporation (VIS) is a leading specialty IC foundry service provider. Since its inception in 1994 in Hsinchu Science Park, Taiwan, VIS has been achieving continuous success in its technology development and production efficiency improvement. VIS has also been consistently offering its customers cost-effective solutions and high value-added services. VIS has five 8-inch fabs in Taiwan and Singapore with a monthly capacity of about 282,000 wafers in 2024.

VIS has a total of over 6,000 employees. We are committed to adhering to our customer-oriented business philosophy to provide customers continuously improved and enhanced specialty IC foundry services. To better serve our worldwide customers, VIS has established sales offices in Taiwan and sales representatives in main IC clusters around the world.

About NXP Semiconductors

NXP Semiconductors N.V. is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP's "Brighter Together" approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $13.28 billion in 2023. Find out more at www.nxp.com.

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