NXP Closes A Number Of 8-inch Factories!

According to local media reports in the Netherlands, semiconductor company NXP plans to close four 8-inch wafer fabs, one of which is located in Nijmegen and the other three in the United States. NXP plans to transition production to a new 12-inch fab: 12-inch can produce 2.25 times more per wafer than an 8-inch, even without edge losses, which means lower fixed and manufacturing costs for higher margins.

NXP plans to close the four fabs over the next 10 years. To transform production, NXP has begun the construction of a new 12-inch fab. The 12-inch wafer fab in Singapore to be built with VIS joint venture VSMC will start mass production in 2027, and the joint venture form also reduces the risk of NXP's capacity build-up. Nijmegen is NXP's other key location in the Netherlands, in addition to its headquarters in Eindhoven, and its manufacturing, R&D, testing, technology enablement and support functions play an important role in the new product introduction process. Although NXP plans to close its 8-inch fab there, this does not affect Nijmegen's important position in NXP's global footprint.