TSMC plans to build chip manufacturing plant in Singapore

By    20 May,2022

Wafer foundry giant TSMC (NYSE:TSM) is considering setting up a chip manufacturing plant in Singapore due to a global shortage of semiconductor supply. A person familiar with the matter said the plan is still under discussion and no final decision has been made. However, the company added that the Singapore government will probably help with the construction of the plant, and the company is in discussions with Singapore's Economic Development Board.


TSMC, which produces chips for customers such as Apple (NASDAQ:AAPL), U.S. super micro company AMD (NASDAQ:AMD) and Nvidia Corporation (NASDAQ:NVDA), had previously said it would spend up to $44 billion in capital expenditures this year to help combat a severe global chip shortage.

According to media reports, TSMC is considering producing chips at this new plant at 7 to 28 nanometers, TSMC's last-generation chip process, which produces products mainly for cars, smartphones and other consumer electronics.

In Apple's earnings call, CEO Tim Cook has pointed out that the world is dealing with a shortage of chips, largely related to "legacy process nodes" or chips with lower process levels.

TSMC has recently been working to expand its global footprint, including plans to build a new factory in the United States in Arizona in the future, after the company also plans to build a factory in Japan in the future. In the last week, TSMC has begun to notify some customers, starting next year to raise foundry prices by 5 percent to 9 percent.