NXP Semiconductors, in recognition of the need to diversify chip production in anticipation of escalating US-Chinese tensions over technology, is in talks to expand their US$7.8 billion Singapore partnership with a Taiwan Semiconductor Manufacturing Co (TSMC) subsidiary.

The NXP chief reaffirmed that his organization is growing geographically. China is the largest EV and telecom market in the world, and the European chipmaker, a major manufacturer of networking and automotive semiconductors, is seeking to expand its supply chain there, Micallef continued.

Micallef said, “We are continuing to invest in Singapore. We are continuing on phase two of this when we get to 2030. Singapore is a very important site for NXP”

Device manufacturers are becoming increasingly concerned that rising tensions in the Taiwan Strait may cause supply disruptions for semiconductors needed for everything from electric cars to smartphones. The majority of chips produced worldwide are still made by Taiwanese companies, primarily TSMC.

The NXP-VIS joint venture will produce more conventional chips, ranging from 130 to 40 nanometers, which are not as advanced as those produced by Taiwan's TSMC. However, they continue to be essential to many different businesses. They will be utilized for tasks including power regulation in consumer, industrial, automotive, and mobile devices. It is anticipated that the new factory will start production in 2027 and generate 1,500 employments.