NXP (NXPI.US) and TSMC (TSM.US) subsidiary break ground on Singapore chip plant

Zhitong Finance learned that VisionPower Semiconductor Manufacturing Company (VSMC), a joint venture between NXP Semiconductors (NXPI.US) and Visumax Semiconductor Manufacturing Co., Ltd. (VIS), supported by TSMC (TSM.US), said on Wednesday that its $7.8 billion plant in Singapore has broken ground and is considering expansion to further diversify the global semiconductor supply chain. The companies said in a statement that initial production at VSMC's fab will start in 2027. They added that the second phase of the plant "will be considered and developed based on the future business development of Visumax and NXP."Leuh Fang, chairman of VSMC and VIS, said: "We are proud to announce the groundbreaking of our first 12-inch fab in Singapore, which will adhere to the core business philosophy of providing professional IC foundry services and laying a foundation for our future development."NXP President and CEO Kurt Sievers added: "NXP has had a successful semiconductor manufacturing business in Singapore for decades, and the new VSMC fab fully aligns with our differentiated hybrid manufacturing strategy. The new fab will support NXP's supply control and geographic diversification growth plans with competitive costs."The companies added that the plant is expected to produce 55,000 300mm wafers per month by 2029 and create 1,500 jobs. In June, VIS and NXP announced plans to establish VSMC in Singapore. The joint venture was established in September.