Philips Semiconductors today opened a $250 million expansion to its MOS4 semiconductor fab in Nijmegen, the Netherlands, bringing total investment in the wafer plant to nearly $1 billion since its 1996 inception.
The expansion comes at a time when recovery in the semiconductor industry is creating an upswing in demand for chips produced at MOS4, according to Philips. The expansion will increase production capacity of the fab from 200,000 to 300,000 8-inch wafers per year, the company said.
"Across the board, we are seeing a tremendous increase in demand for our innovative products," said Arthur van der Poel, chief executive officer of Philips Semiconductors, in a statement. The company's strong position in markets for TV Text, DVD products, mobile phones, and smart cards have resulted in "huge orders" for the MOS4 fab, he said.
Philips Semiconductors' Nijmegen facility is the largest semiconductor manufacturing complex in Europe with five fabs on the site. The site employs over 4,000 process engineers, designers and support staff. In total, approximately 400 new jobs will be created in Nijmegen next year, 200 of which are in new expansion, Philips said.