VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC), the joint venture formed in September, 2024 by Vanguard International Semiconductor Corporation and NXP Semiconductors N.V. today celebrated breaking ground at the site of the joint venture’s new 300mm wafer manufacturing facility in Tampines, Singapore.
The groundbreaking ceremony was attended by customers, suppliers, partners, association representatives, residents, and government officials. Executives from VSMC, VIS and NXP were also present to commemorate the start of construction on the new facility, which is anticipated to begin initial production in 2027. VSMC was also honored to have Dr. Tan See Leng, Minister for Manpower and Second Minister for Trade and Industry, participate in the ceremony.
“Singapore is renowned not only as Asia’s economic hub but also as a beacon of technological innovation. We are proud to announce the groundbreaking of our first 12-inch fab in Singapore, which will uphold the company’s core business philosophy, provide specialty IC foundry services, and lay the foundation for our future development. This fab will advance the semiconductor industry and bolster the local high-tech sector,” said VSMC and VIS Chairman Leuh Fang. “Designed with modern technology and guided by green manufacturing principles, the fab reflects our firm commitment to the future. VSMC is dedicated to being a responsible corporate citizen, supporting economic growth while ensuring environmental sustainability.”
“I’m humbled and excited to see construction of VSMC’s 300mm fab moving forward very swiftly,” said NXP President and CEO Kurt Sievers. “NXP has enjoyed decades of successful semiconductor manufacturing operations in Singapore, and the new VSMC fab is entirely aligned with our differentiated hybrid manufacturing strategy. This new fab will support NXP’s growth plans with supply control and geographic resilience at competitive cost.”
“We welcome the decision by VIS and NXP to jointly establish VSMC and its greenfield 12-inch wafer fab in Singapore. This is testament to Singapore’s attractiveness to global companies to site advanced manufacturing activities, and reinforces Singapore’s position as a critical global node in the semiconductor supply chain. The new fab will not only create about 1,500 good jobs, it will also facilitate business and partnership opportunities for local enterprises,” said Ms Cindy Koh, Executive Vice President, Singapore Economic Development Board. “Singapore will continue to invest in talent development, R&D, and decarbonization solutions to enhance our competitiveness and strengthen Singapore’s semiconductor ecosystem.”
Construction of the VSMC fab is on-track, 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 future business development by VIS and NXP. 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.
The fab will adopt a fully automated production model, integrating an Automated Material Handling System (AMHS) and comprehensive quality management through Artificial Intelligence applications. This will achieve fast, precise, high-yield, and high-quality manufacturing excellence, providing customers with competitive services and creating a smart fab in Singapore.
Addressing the company’s commitment to sustainability stewardship, the fab will be constructed in accordance with Singapore Green Mark standards and will incorporate rigorous green manufacturing measures. To help minimize environmental impact, the site will feature energy-efficient cooling and lighting systems, high degree of process water recycling, and the use of eco-friendly materials. In addition, several green office design principles will be integrated, such as ample natural light, abundant communal spaces, and lush greenery to foster and contribute to a culture of wellness.
On June 5, VIS and NXP announced plans to establish the VSMC joint venture in Singapore to build a 300mm wafer fab with a total investment of approximately $7.8 billion. On September 4, VIS and NXP announced the establishment of the VSMC joint venture, having obtained all necessary regulatory approvals from relevant authorities and injected capital to officially establish the VSMC joint venture. The joint venture marks a significant step to establishing geographic resilience and accelerating Singapore’s semiconductor ecosystem.