[News] NXP Reportedly to Shut Four 8-Inch Fabs, Including Its Largest, in 12-Inch Transition

According to EETimes China, citing Dutch media outlet de Gelderlander, semiconductor giant NXP is reportedly planning to shut down several 8-inch wafer fabs as it transitions to more efficient 12-inch production. The report states that four 8-inch fabs are slated for closure—one in Nijmegen, the Netherlands, and three in the U.S.

As noted by TechZine, NXP’s Nijmegen factory has long played a key role in the Dutch semiconductor industry. With 1,700 employees, it is the company’s largest production site worldwide, primarily manufacturing automotive chips. Although NXP aims to proceed with the closure as soon as possible, a transition period of about ten years is reportedly under consideration, the report adds.

The decision is largely driven by outdated technology at the Nijmegen site, which uses 8-inch wafers that yield significantly fewer chips compared to the 12-inch wafers planned for use in NXP’s new fabs, TechZine indicates. It is also part of NXP’s broader strategy to adopt more advanced production technologies at new sites in Singapore and Germany, as highlighted by TechZine.

Meanwhile, ijiwei, citing NL Times, notes that NXP announced in February 2025 it may cut up to 1,800 jobs globally due to growing market pressures. The decision is reportedly influenced not only by concerns over a potential trade war, but also by broader market conditions.

NXP’s Global Strategy: Singapore and Dresden Ventures

In June 2024, Vanguard International Semiconductor (VIS), a TSMC affiliate, announced a joint venture with NXP—called VSMC—to build a 12-inch fab in Singapore. According to the press release, mass production is expected to begin in 2027, with monthly output reaching 55,000 300mm wafers by 2029.

In addition, NXP is participating in the European Semiconductor Manufacturing Company (ESMC), a joint venture led by TSMC in partnership with Bosch and Infineon, to build a 12-inch wafer fab in Germany. According to the press release, mass production is expected to begin by the end of 2027.

Read more

• [News] European Chip Giants NXP and STMicroelectronics Plan Layoffs Amid Market Downturn
• [News] TSMC Affiliate VIS and NXP to Invest USD 7.8 Billion for 12-Inch Fab in Singapore, Expected Mass Production by 2027

(Photo credit: NXP)