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Singapore is about to have one of the largest facilities in the world for manufacturing new semiconductors.
What’s happening:
- Dutch semiconductor company NXP has partnered with Vanguard International Semiconductor to build a new plant for manufacturing semiconductors that is expected to cost $7.8B USD to construct
- The new manufacturing plant is set to be located in Singapore
By the numbers:
- NXP will contribute $1.6B USD to the new project and Vanguard International Semiconductor will contribute $2.4B USD
- The remaining $3.8B USD to fund the project is coming from outside investors
- Currently, 90% of the semiconductor production in the world comes from Taiwan
Why it matters:
- There have been rising concerns around a lack of supply of artificial intelligence chips and semiconductors due to the unprecedented boom in artificial intelligence startups raising venture capital, which has sent shares of Nvidia (NASDAQ: NVDA) to new all time highs and a flurry of new startups emerging from stealth
Going deeper:
- Semiconductors have been on a rapid rise recently, with Black Machine announcing a mega funding round to develop next generation semiconductor technology and purpose built venture capital funds for semiconductor startups beginning to emerge
The intrigue:
- Vanguard International Semiconductor is backed by Taiwan Semiconductor Manufacturing Company (NYSE: TSM) who is one of the largest publicly traded semiconductor companies in the world
