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On June 10, local media in the Netherlands reported that semiconductor company NXP plans to close four 8-inch wafer fabs, one of which is located in Nijmegen, with the other three in the United States.
NXP plans to transition production to new 12-inch wafer fabs: Even without considering edge losses, the production capacity of a 12-inch single wafer is 2.25 times that of an 8-inch wafer, which means lower fixed and manufacturing costs, leading to higher profits.
NXP plans to close the aforementioned four fabs over the next ten years. Its 12-inch wafer fab, built in partnership with the world-leading joint venture VSMC in Singapore, is expected to start mass production in 2027, and the joint venture also reduces the risk of capacity construction for NXP.
Nijmegen is another key location for NXP in the Netherlands, aside from its headquarters in Eindhoven, with operations including manufacturing, R&D, testing, technology enablement, and support functions, playing an important role in the introduction of new products.
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