NXP, Vanguard to invest $7.8 bln in Singapore wafer manufacturing plant (updated)

United Microelectronics

05/06/2024 08:28

(Adds details from statement in paragraphs 2 and 5, adds
background in paragraphs 4, 6.)
       June 5 (Reuters) - NXP Semiconductors  NXPI.O  and
TSMC-backed  2330.TW  Vanguard International will enter into a
joint venture to build a $7.8 billion semiconductor wafer
manufacturing plant in Singapore to cater to the automotive,
industrial, consumer and mobile end markets, the firms said in a
statement on Wednesday. 
    Vanguard  5347.TWO  will invest $2.4 billion with a 60%
stake in the JV, while NXP will invest $1.6 billion and hold 40%
of the venture, the statement said. The firms will also provide
an additional $1.9 billion to support the long-term capacity of
the plant.
    Construction of the plant is expected to begin in the
second-half of 2024, with initial production available to
customers in 2027, the firms said. Construction of the initial
phase will take place after regulatory approvals. 
        TSMC has held talks with its customers about whether to
move its fabrication plants off Taiwan amid increased tensions
with China, although such a move would be impossible, a senior
company executive said on Tuesday.
        The joint venture, which will be operated by Vanguard,
expects to create about 1,500 jobs in Singapore, the statement
said. 
  
    Earlier this year, United Microelectronics Corp (UMC)
 2303.TW  said it will invest $5 billion in a new microchip
factory in Singapore. 

 (Reporting by Gursimran Kaur in Bengaluru; Editing by Sonia
Cheema)
 ((GursimranKaur.Mehar@thomsonreuters.com;))