NXP, Vanguard to Build $7.8 Billion Singapore Chip Wafer Plant as Tech Firms Hedge Against China

  • New facility begins construction in second half of 2024
  • Region poised to benefit from drive to diversify from China
WATCH: Annabelle Droulers reports on NXP and Vanguard’s agreement to construct a chip wafer plant in Singapore.Source: Bloomberg
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NXP Semiconductors NV is teaming up with a company partly owned by Taiwan Semiconductor Manufacturing Co. to build a $7.8 billion chip wafer plant in Singapore, marking a boost for the island nation’s tech ambitions.

TSMC-backed Vanguard International Semiconductor Corp. and NXP will begin constructing the facility in the second half of this year, with production starting in 2027, the two companies said Wednesday in a statement. Taiwan-based Vanguard will own 60% of the joint venture and the Netherlands-based NXP the rest.