Zhitong Finance has learned that NXP Semiconductors (NXPI.US) and the joint venture VisionPower Semiconductor Manufacturing Company (VSMC) supported by Taiwan Semiconductor (TSM.US) announced on Wednesday that their factory in Singapore, with an investment of $7.8 billion, has broken ground and is considering expansion to further diversify the global semiconductor supply chain. The two companies stated in a release that the initial production at the VSMC wafer fab is expected to start in 2027. They added that the second phase of the factory will be considered and developed based on the future business needs of World Advanced and NXP.

The chairman of VSMC and VIS, Leuh Fang, stated: "We are proud to announce the groundbreaking of our first 12-inch wafer fab in Singapore, which will adhere to the company’s core operational philosophy, providing specialized IC foundry services and laying the foundation for our future development."

Kurt Sievers, president and CEO of NXP, added: "NXP has decades of successful semiconductor manufacturing operations in Singapore, and the new VSMC wafer fab perfectly aligns with our differentiated mixed manufacturing strategy. This new fab will support NXP’s growth plans for supply control and geographic flexibility at competitive costs."

The two companies further stated that the factory is expected to reach a monthly output of 0.055 million 300mm wafers by 2029 and create 1,500 jobs. In June of this year, VIS and NXP announced plans to establish the VSMC joint venture in Singapore. The joint venture was established in September.