TSMC may build new multi-billion dollar chip plant in Singapore

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Apple Silicon manufacturer TSMC is reportedly in talks to build a major new fabrication facility in Asia, as part of measures to address the global chip shortage.

As its new $12 billion plant in Arizona is delayed, TSMC is said to be having preliminary talks with Singapore's Economic Development Board about building a new facility there.

According to the Wall Street Journal, no decision has been made yet, but TSMC is negotiating for the local government to help fund the project. Reportedly, multiple governments have been attempting to attract processor manufacturers, specifically to reduce global reliance on Taiwan and China.

"Securing supply chains for essential components is a key issue for the Singapore government," an unspecified source told the publication, "and it is following in the footsteps of the US and Japan."

A separate source says that TSMC is looking to build the facility to manufacture between 7-nanometer and 28-nanometer processors. These are used in some smartphones, but are more widely seen in cars and other devices.

No specific location or budget estimate is known for the potential Singapore plant, but TSMS has reportedly budged between $40 billion and $44 billion for its overall capital expenditure in this financial year.

Singapore is already home to many processor manufacturers including ones who are supplying, or have supplied, Apple. They include Micron Technology, which is believed to supply flash memory for the iPhone.

Apple itself has a long history in Singapore, with Tim Cook recently celebrating 40 years since the company began making the Apple II there.

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