TSMC Planning to Establish Multibillion-Dollar Chip Factory in Singapore

TSMC, the world's largest contract chipmaker is considering building a semiconductor factory in Singapore to solve the global supply shortage, people familiar with the matter say.

The final decision has not yet been made and the details of the plan are still under discussion, but one said the preliminary discussions were about a large plant that would cost billions of dollars. 

Some people said the government of Singapore, a major chip manufacturing hub, could help fund the facility, and negotiations with the government's Economic Development Commission are underway.

In a project in Singapore, TSMC is studying the feasibility of a production line that manufactures chips from 7 to 28 nanometers, another person familiar with the plan said. These chips are based on old production technology and are widely used in automobiles, smartphones, and other devices.

Since the beginning of last year, a shortage of semiconductors has shaken many industries, including automobile manufacturing. Several governments, including the United States and Japan, are trying to attract chip manufacturing sites. Reducing the concentration of manufacturing in Taiwan and avoiding cutting-edge technology from China's hands is also a priority for the United States and its allies.