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Taiwan’s TSMC considers Singapore chip fab

Chipmaker looking into feasibility of setting up facility to produce 7nm, 28nm chips

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TSMC. (Reuters photo)

TSMC. (Reuters photo)

TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) is mulling setting up a chip plant in Singapore.

One source told The Wall Street Journal (WSJ) no definitive decision has been made as talks are in the preliminary stages. The Singaporean government could help subsidize the project, while negotiations are taking place with the country’s Economic Development Board, the report said.

“TSMC doesn’t rule out any possibility but does not have any concrete plan at this time,” a company spokeswoman told The WSJ. The world’s largest contract chipmaker is looking at setting up a less advanced facility that would make 7nm to 28nm chips.

TSMC is looking to increase the capacity of these less advanced chips, which are widely used in automobiles and other electronic devices. The Taiwan chipmaker is currently building a semiconductor fab in Japan’s Kumamoto Prefecture through a joint-venture between Sony Semiconductor Solutions Corporation and Denso to produce 12nm, 16nm, 22nm, and 28nm chips with commercial production expected to start in December 2024.

Meanwhile, it is also planning to build a new chip fab in Kaohsiung that will focus on manufacturing 7nm and 28nm chips, with commercial production scheduled to begin in 2024.