[News] NXP Reportedly Commits to Build China-Specific Chip Supply Chain amid Tightening U.S. Export Controls

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Following a new wave of U.S. export restrictions that targets nearly 140 Chinese semiconductor companies, NXP, while making strides in building a chip plant in Singapore, affirms that it is working to provide the capability of a localized supply chain within China, according to a report from Bloomberg.

Citing Andy Micallef, the Dutch chip giant’s Executive Vice President, the report notes that NXP is actively exploring ways to meet the needs of customers requiring manufacturing capacity within China.

As a major supplier of automotive and networking chips, NXP operates a testing and packaging facility in Tianjin, which is located in Northern China. However, it currently lacks front-end manufacturing in the region, the report adds.

It is worth noting that NXP would not be the only semiconductor giant that aims for expansion in China recently. In 2023, STMicroelectronics has signed an agreement with China’s Sanan Optoelectronics to create a new 200mm silicon carbide device manufacturing JV in Chongqing, China. The new SiC fab is targeting to start production in Q4 2025, according to STMicroelectronics.

As per China’s local media reports, the project, with a total investment of approximately CNY 30 billion, has started production around late August, two months ahead of schedule.

Andy Micallef’s remarks on NXP’s efforts to diversify its geographic presence was made on the sidelines of the groundbreaking ceremony on a joint chip facility in eastern Singapore, according to Bloomberg. NXP is teaming up with TSMC’s affiliate Vanguard International Semiconductor (VIS) for the project.

According to the press release of VIS, the two parties have jointly established VSMC and its 12-inch wafer fab in Singapore. The new fab will start initial production in 2027, with an expected output of 55,000 300mm wafers per month in 2029.

The two parties will keep exploring the expansion of their USD 7.8 billion joint venture in Singapore, aiming to diversify chip production amid escalating US-China tech tensions, as per Bloomberg. They are already working on a phase two expansion, the report adds.

Read more

• [News] TSMC Affiliate VIS and NXP to Invest USD 7.8 Billion for 12-Inch Fab in Singapore, Expected Mass Production by 2027
• [News] European Chipmaker CEOs Warn of Nationalist Policy Risks

(Photo credit: NXP)