NXP Semiconductors and Vanguard International Semiconductor have opened their joint-venture semiconductor fab in Singapore, marking the operational start of a manufacturing partnership that pairs one of Europe's largest automotive chip suppliers with a Taiwanese mixed-signal foundry.

The two companies first announced the venture in June 2024. Under the agreement, NXP holds a 40% stake and Vanguard 60%. The project represents a combined investment of approximately $7.8 billion, a figure the partners disclosed when they laid out the plan.

The Singapore government has supported the project. The Economic Development Board has actively courted advanced manufacturing investment as part of a national push to expand the country's role in semiconductor production.

The fab sits in an expanding Singapore cluster. The city-state already hosts major manufacturing sites, including GlobalFoundries' operations and SOI wafer supplier Soitec's plant.

For NXP, the fab adds capacity at a time when the company — which generates most of its revenue from automotive and industrial chips — is navigating a demand environment marked by inventory corrections. For Vanguard, the joint venture marks its first manufacturing presence outside Taiwan, reducing concentration on its home market.

The opening underscores how chipmakers are spreading manufacturing across geographies as customers and governments push for supply-chain resilience beyond Taiwan and China.

The facility is expected to reach full output in the coming years, adding to regional capacity for mixed-signal and power-management components used in cars and industrial systems.