Taiwan Semiconductor Manufacturing Company (TSMC) is looking at constructing a new multibillion-dollar factory in Singapore to address chip shortage across the world, reported Wall Street Journal (WSJ), citing unnamed sources.
Talks are underway with the Economic Development Board (EDB), and so far no final decision has been made.
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The government of Singapore may help fund building the facility.
TSMC told The Straits Times: “TSMC does not rule out any possibility; however, the company does not have a concrete plan at this time to build a fab in Singapore.”
The company is the largest contract chipmaker of the world and earns about 25% of its revenue from Apple.
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This potential facility could manufacture between 7-nanometer (nm) and 28nm processors, reported WSJ.
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By GlobalDataChips are used in some smartphones besides cars and other electronic devices.
This facility, once operational, could free up manufacturing capacity at other facilities where Apple’s latest 5nm chips can be produced to ease global chip shortage, according to MacRumors report.
Details regarding the particular location or budget estimate for this potential facility have not been given in the WSJ report.
TSMC plans to invest between $40bn and $44bn for its total capital expenditure in the present financial year.
TSMC’s primary facilities are located in Taiwan, and also operates a facility in Washington. It is also constructing its first Japanese facility under a joint venture with Sony and a $12bn 5nm chip facility in Arizona.
Several countries in Europe, besides the US, Japan and China have launched billions of incentives to boost semiconductor production because of supply chain and national security concerns.
In 2021, leading contract chipmaker Globalfoundries announced a $4bn investment in partnership with EDB and others to construct a chip facility in Singapore.
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Image: Chips are used in some smartphones besides cars and other electronic devices. Credit: Colin Behrens from Pixabay.
