Nexperia said on Thursday that it will spend US$700 million for next 12 to 15 months to expand its chip production capacity.
The money will be spent to at its European wafer fabs, assembly factories in Asia, and global research facilities.
Research will include those into gallium nitride (GaN) wide bandgap semiconductors and power management ICs.
Nexperia said the spending will expand the production capacity of its Hamburg 8-inch fab from 35,000 wafers a month by 20% from mid-2022. The fab can produce around 70 billion chips a year at its current capacity.
Its 8-inch fab in Manchester, the UK, which manufactures TrenchMOS, currently has a capacity of 24,000 wafers per month, will have its capacity boosted by 10% from mid-2022.
Netherlands-based Nexperia will also hire over 200 new engineers under the spending plan.
The company said it reacted well to the surge in demand from the third and fourth quarters of 2020, which allowed it to record a solid sales of US$1.4 billion for the year 2020. It will continue to meet customer demand through the fresh investment, it added.