By Sherry Qin


Vanguard International Semiconductor and NXP Semiconductors plan to build a $7.8 billion chip manufacturing plant in Singapore to meet growing demand in the region.

Taiwan-based Vanguard, which is partially owned by Taiwan Semiconductor Manufacturing Co., and Dutch chipmaker NXP will set up a joint venture and build a new 300mm semiconductor wafer manufacturing facility in Singapore, the two companies said Wednesday in a statement. Construction is slated to start in the second half of 2024.

The fab will supply chips to the automotive, industrial, consumer and mobile end markets and aim to have initial production available to customers in 2027.

Vanguard will own 60% of the joint venture and NXP the rest.

Countries and companies worldwide are investing billions of dollars to establish dominance in the semiconductor sector, an industry that is expected to top $1 trillion by the end of the decade, according to forecasts by the chip-industry consulting firm International Business Strategies.

Last month, South Korea unveiled a $19 billion support package for its chip industry and China raised about $48 billion in its third and largest-yet installment of a national semiconductor fund. Japan and the European Union have put forth billions in government support.


Write to Sherry Qin at sherry.qin@wsj.com


(END) Dow Jones Newswires

06-05-24 0323ET