Dutch semiconductor giant NXP Semiconductors is accelerating its transition to 12-inch (300mm) wafer production, with plans to shut down four of its legacy 8-inch fabs over the next decade, according to local media outlet de Gelderlander. One of the targeted facilities is in Nijmegen, the Netherlands—NXP's largest manufacturing site globally—while the other three are located in the United States.

The move marks a major strategic shift as NXP aims to improve manufacturing efficiency and reduce unit costs. A 12-inch wafer yields approximately 2.25 times more chips than an 8-inch wafer under similar conditions, offering significant cost advantages in high-volume production. Analysts note that while 12-inch fabs involve higher upfront investment, their long-term economic efficiency makes them the preferred choice for mature and high-performance processes.

To support this transition, NXP and Taiwan-based Vanguard International Semiconductor (VIS) established a joint venture, VSMC, in June 2024 to build a 12-inch fab in Singapore. Backed by a planned investment of $7.8 billion, the facility will focus on producing mixed-signal, analog, and power management chips for automotive, industrial, and consumer electronics markets. The fab is scheduled to begin mass production in 2027, with monthly output projected to reach 55,000 wafers by 2029. Technology for the fab will be licensed directly from TSMC.

In parallel, NXP is also participating in the European Semiconductor Manufacturing Company (ESMC) project in Dresden, Germany—a TSMC-led joint venture with Bosch and Infineon. Production at that 12-inch fab is also expected to start in late 2027.

The Nijmegen site, while facing an eventual fab shutdown, remains a critical part of NXP's global R&D and operations network. In addition to manufacturing, the site plays a key role in product testing, technical support, and new product introduction. Any closure will be part of a long-term transformation plan that includes workforce transitions and reinvestment in advanced manufacturing capabilities.

Industry watchers see NXP's strategy as aligned with broader trends in the semiconductor sector, where growing demand from automotive, data centers, AI, and consumer electronics is driving the shift to higher-efficiency 12-inch production. According to SEMI, global 12-inch wafer capacity is expected to grow at a compound annual rate of nearly 10%, reaching 9.2 million wafers per month by 2025.

Despite short-term labor and operational challenges, NXP's transformation reflects a strong commitment to maintaining competitiveness and technological leadership in an increasingly consolidated and efficiency-driven industry.