World’s No. 1 chipmaker TSMC eyes multibillion-dollar plant in Singapore

GLOBAL chipmaker Taiwan Semiconductor Manufacturing Company (TSMC) may build a new multibillion-dollar factory in Singapore, the Wall Street Journal (WSJ) reported on Thursday (May 19).

The Singapore government may help fund the construction of the plant, the report said, citing unnamed sources. Negotiations are underway with the Singapore Economic Development Board (EDB), WSJ added.

When contacted by The Business Times, a spokesperson said EDB does not disclose details of project discussions with companies, if any, as they are private and confidential.

Meanwhile, a TSMC spokesperson told WSJ: “TSMC doesn’t rule out any possibility but does not have any concrete plan at this time.”

The Taiwan chip firm is the world's largest contract chipmaker and a major Apple supplier.

Just in April, TSMC posted a first-quarter net profit which beat estimates, on the back of solid demand for chips and rising prices amid an ongoing global chip shortage.

Net income rose to T$202.7 billion (S$9.46 billion) in the 3 months through March, higher than the T$186.1 billion estimated by analysts on average. Revenue jumped 36 per cent to a record T$491.1 billion.

For the Singapore project, TSMC is evaluating the feasibility of production lines that would make 7 to 28-nanometre chips, WSJ said. These chips are based on older production technologies and are widely used in smartphones, cars and other devices.

Taiwan's United Microelectronics Corp (UMC) announced in February that it will invest US$5 billion in a new microchip factory in Singapore, with production expected to start in 2024 to support the boom in 5G and auto electronics. UMC, which has already been producing semiconductors in the country for more than 20 years, said the new factory would produce 22 and 28-nanometre chips.

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In 2021, GlobalFoundries, the world’s third-biggest contract chipmaker, broke ground on a new S$5 billion fab, or manufacturing plant, adding 250,000 square feet of clean-room space and new administrative offices to the US company’s campus at Woodlands Wafer Fab Park.

The investment was established in partnership with EDB and with co-investment from committed customers.