Asia Tech Wire (July 24) -- Dutch semiconductor company NXP Semiconductors N.V. and Taiwan-based contract chipmaker Vanguard International Semiconductor Corp. (VIS) will break ground on a $7.8 billion joint venture fab in Singapore in the second half of this year.

In early June, NXP and VIS announced the establishment of their joint venture, VisionPower Semiconductor Manufacturing Company (VSMC), in Singapore to build a 12-inch wafer fab, with an investment of about $7.8 billion.

VIS will operate the fab, which will utilize 130nm to 40nm technology for mixed-signal, power management and analog products targeting the automotive, industrial, consumer and mobile markets.

TSMC, which holds a 28.3% stake in VIS, will transfer the chip manufacturing technology to the 12-inch fab.

VIS previously expected that the new plant would probably start moving equipment in from the end of 2026 and begin small-volume production in 2027.

The company estimated that the plant will realize a monthly capacity of about 10,000 units in 2027, 30,000 units in 2028, and 50,000 units in 2029.

And industry sources forecast that the plant will start contributing to profits in 2029.