Recently, it was reported that Half NXP plans to close four 8-inch wafer fabs, one of which is located in Nijmegen, the Netherlands, and the other three are within the United States.
As another key location of NXP in the Netherlands besides its headquarters in Eindhoven, Nijmegen's business includes manufacturing, research and development, testing, technology enablement, and support functions, playing an important role in the process of introducing new products. Behind this, NXP plans to transition production to a new 12 inch wafer fab: even without considering edge loss, the production of 12 inch monocrystalline wafers is 2.25 times that of 8-inch wafers, which means lower fixed and manufacturing costs and higher profits. Therefore, NXP plans to close the four wafer fabs mentioned above in the next 10 years. In addition, the 12 inch wafer fab built by NXP and the world's leading joint venture VSMC in Singapore will begin mass production in 2027, which will help reduce the risk of NXP's capacity building. This factory focuses on the production of mixed signal, power management, and analog chips from 130nm to 40nm. It is expected to achieve a monthly production scale of 55000 wafers by 2029, becoming an important manufacturing hub for NXP in the Asia Pacific region.
NXP's strategic adjustment is not an isolated case, but a microcosm of the global semiconductor industry upgrading. With the explosive growth of demand for AI and data centers, it has driven the market towards more efficient and lower cost manufacturing technologies. According to SEMI's statistics, it is expected that 82 new 12 inch chip facilities and production lines will be built globally between 2023 and 2026. By 2026, the production capacity of 12 inch wafer fabs will increase to 9.6 million wafers per month. According to relevant data, 12 inch wafers account for about 65% of the total semiconductor wafer shipments, while 8-inch wafers account for about 20%, with the remaining portion mainly consisting of smaller sized wafers.
Dr. Li Wei, Executive Vice President of Shanghai Silicon Industry, believes that 2024 may be a turning point for the exit of 8-inch silicon wafers from the historical stage. Because the integrated circuit industry tends to eliminate outdated production capacity technologies during industrial adjustments. Industry analysis suggests that NXP's 12 inch transformation is the result of a combination of technological iteration, market demand, and industry competition. Despite facing challenges such as equipment costs and process complexity, it is gradually building a composite production capacity system that covers advanced and mature processes through joint ventures, contract manufacturing, and other models. However, it needs to find a new balance between technological breakthroughs, cost control, and regional layout.
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