NXP's Nijmegen Plant Faces Uncertain Future Amid Global Semiconductor Adjustments
Nijmegen, Thursday, 22 May 2025.
NXP Semiconductors plans to shut down its Nijmegen plant by 2037, aiming to transition to 300mm wafer facilities in Germany and Singapore. This shift highlights industry demand for efficiency and cost reduction.
Strategic Shift to Advanced Manufacturing
NXP’s decision marks a significant transformation in semiconductor manufacturing strategy, as the company plans to consolidate its 200mm wafer production into new 300mm facilities. The transition, announced by chief of operations Andy Micallef, aims to completely phase out older facilities over approximately ten years [1]. This move affects not only the Nijmegen plant but also three facilities in the United States, all of which are expected to cease operations by 2037 [2].
Economic Impact and Employment Concerns
The Nijmegen facility, currently NXP’s largest production site worldwide, employs 1,700 workers and primarily produces chips for the automotive industry [3]. The plant’s potential closure has sparked concern among local politicians about job losses and the region’s technological future [3]. However, NXP has secured a European loan of one billion euros, with part of the funding designated for continuing research and development activities in Nijmegen [3].
Future Production Facilities
NXP is establishing two strategic manufacturing partnerships: ESMC in Dresden, Germany, where it holds a 10% stake, and VSMC in Singapore, where it maintains a 40% equity position [2]. Both facilities are scheduled to begin operations in 2027 [1]. The Singapore facility represents a particularly significant investment of $7.9 billion [3]. These new facilities will utilize more efficient 300mm wafer technology, which yields more chips per wafer compared to the current 200mm process [3].
Transition Timeline and Current Operations
Despite earlier reports suggesting an immediate closure, NXP spokesperson Martijn van der Linden has clarified that the Nijmegen facility will continue operations for at least ten more years [4]. The transition to new production methods will only begin after the new facilities become operational in 2027 [4]. This gradual approach aims to ensure a smooth transition while maintaining current production capabilities [alert! ‘Exact closure date remains unconfirmed’].