Eindhoven chipmaker NXP plans to expand billion-dollar factory in Singapore
22
World
December 4, 2024 08:30
amsterdam - Eindhoven chipmaker NXP is partnering with Taiwanese TSMC giant to expand a billion-dollar factory in Singapore for the Chinese market.
Eindhoven based NXP, a prominent player in the automotive sector, is already collaborating with Vanguard International, a subsidiary of TSMC, and is looking to expand in the eastern part of Singapore.
In June, NXP announced the construction with TSMC. According to Andy Micaleff, a board member of the company that generated $13.3 billion in revenue last year, the project has entered its next phase due to the increasing demand for chips. However, the next phase still needs formal approval.
The joint venture with VIS focuses on the production of existing 130 to 40 nanometer chips, widely used in various industries.
This week, the US government imposed new restrictions on Chinese chip producers impacting the largest economy, limiting China's access to technology. In response, Beijing blocked exports of critical metals to the United States.
NXP, listed in the US, intends to continue expanding its production line in China, as emphasized by Micaleff to Bloomberg news agency. The company already has a testing and assembly complex in Tianjin, China, but lacks front-end or end-product manufacturing capacity in the country.
Taiwanese TSCM is the leading global computer chip manufacturer. Tensions around Taiwan are anticipated as China reiterated viewing the region as its integral part, refusing to recognize it as an independent nation.
NXP owns chip factories in Germany, the United States, and Malaysia besides other locations. A major production facility is also situated in Nijmegen.