Allen & Gledhill And A&O Shearman Advised On $7.8 Billion Singapore Semiconductor JV

Allen & Gledhill And A&O Shearman Advised On $7.8 Billion Singapore Semiconductor JV

In a significant move set to enhance the production of semiconductor products, Vanguard International Semiconductor Corporation (VIS) and NXP Semiconductors have announced a $7.8 billion joint venture to construct a new 300mm semiconductor wafer manufacturing facility in Singapore. This strategic partnership aims to bolster the production of mixed-signal, power management, and analogue products, catering to the automotive, industrial, consumer, and mobile sectors.

Allen & Gledhill (A&G), one of Singapore's Big Four law firms, is acting as transaction counsel for VIS, a leading specialty integrated circuit foundry service provider. VIS, which operates five 8-inch semiconductor plants in Taiwan and Singapore and is partly owned by TSMC, is being advised by an A&G team that includes Partners Richard Young, Zhao Jiawei, Yeo Boon Kiat, Elsa Chen, and Peh Aik Hin.

On the other hand, NXP Semiconductors, a major player in the automotive, industrial, IoT, mobile, and communications infrastructure markets, sought counsel from A&O Shearman. The firm’s cross-practice, cross-jurisdictional team was led by Partner Tess Fang, with key contributions from Matthew Gee and Jackson Allen. Antitrust and IP matters were handled by Partners Noah Brumfield and Nigel Parker, respectively. NXP, which operates in more than 30 countries, reported a revenue of USD 13.28 billion in 2023.

The joint venture marks a significant development as Singapore continues to strengthen its role in the global tech supply chain, particularly in the manufacturing of low-end chips essential for electric vehicles, smartphones, and other devices. Singapore currently accounts for over 10 percent of global chip production and about 20 percent of semiconductor equipment manufacturing. The city-state is also the largest production hub outside the United States for U.S.-based firms such as Applied Materials and Micron.

The new facility in Singapore will focus on producing 130nm to 40nm mixed-signal, power management, and analogue products, targeting the automotive, industrial, consumer, and mobile markets. This partnership is expected to significantly enhance the production capabilities and supply chain resilience for both VIS and NXP, as well as strengthen Singapore's position as a critical node in the global semiconductor industry.