In this article, we are going to cover the new multibillion-dollar TSMC Singapore plant that might be built according to WSJ. Taiwan Semiconductor Manufacturing Company (TSMC) is considering constructing a new multibillion-dollar factory in Singapore to help address the worldwide chip shortage, according to a Wall Street Journal report on Thursday.
The Taiwan Semiconductor Manufacturing Company, or TSMC, is best known for producing the A-series and M-series chips that power Apple devices. However, the firm also creates a variety of less exciting but nevertheless crucial chips for things like display drivers and power management.
According To The Wall Street Journal, unnamed sources say that negotiations are underway with the Economic Development Board (EDB). It stated that a conclusion has yet to be reached. The report also stated that the Singapore government may assist in funding the construction of the facility. The response from an EDB spokesperson to Straits Times said on Friday that it does not provide information about project discussions with businesses, if any, because they are private and confidential. Taiwanese chip manufacturing giant TSMC also told Straits Times that:
“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.”
What would the TSMC Singapore plant achieve?
TSMC, the world’s largest contract chipmaker, gets about a quarter of its revenue from Apple. The potential TSMC Singapore plant would be able to make between 7-nanometer (nm) and 28nm processors, which are based on older manufacturing processes, according to the Wall Street Journal report.
According to AppleInsider, these are chips found in some smartphones, but they’re more widely used in automobiles and other devices. TSMC is increasing investment in these processors, which have had some of the worst supply-chain delays. According to a report by MacRumors, the Singapore facility may be able to release production capacity at other plants where Apple’s latest 5nm chips can be made and assist alleviate worldwide shortages.
In the Wall Street Journal article, no information was provided regarding where or how much the plant will cost. According to TSMC, it intends to spend a minimum of US$40 billion and a maximum of US$44 billion on overall capital expenditure in 2022. Taiwan’s major manufacturing facilities are owned by TSMC, but it has a factory in Washington state as well as plans for a joint venture with Sony and a US$12 billion 5nm chip manufacturing facility in Arizona.
Against a backdrop of major economies, including the United States, Europe, Japan, and China, all of which have offered billions of dollars in incentives to bring semiconductor production onshore due to supply chain constraints and national security concerns. Globalfoundries, the world’s third-largest contract chipmaker, announced last year a US$4 billion investment plan to construct a new plant in Singapore in partnership with EDB.
A Singapore base would also assist TSMC in reducing its concentration of production in Taiwan. The epidemic has vividly demonstrated the dangers of having too much manufacturing capacity in a single nation, and Taiwan is now at risk from a resurgent China. This is most likely why TSMC wants to move operations to Singapore rather than to China.
We hope that you enjoyed this article on the TSMC Singapore plant. If you did, you might also want to check out Samsung will build $17B chip factory in Texas, or NVIDIA and TSMC warn about chip shortages until 2023.
