Apple Chip Supplier TSMC Looking to Build Plant in Singapore to Tackle Shortages

Apple chip supplier TSMC is exploring the potential of building a new factory in Singapore to help address the global chip shortage, the Wall Street Journal reports.

tsmc semiconductor chip inspection 678x452
TSMC is Apple's sole chip supplier and is responsible for fabricating all of the company's custom silicon chips, such as the A15 Bionic and the M1. While Apple's chip orders have been prioritized over many other companies, limiting the impact of shortages on Apple customers, TSMC has still suffered from global supply chain issues as the world's biggest contract chip maker.

The plans to build a new multi-billion dollar factory in Singapore are still under consideration. According to individuals said to be familiar with the matter, the government of Singapore may help to fund construction of the plant.

The proposed production lines would manufacture chips with seven- to 28-nanometer fabrication processes, which are older production technologies. While Apple's latest chips are manufactured with TSMC's five-nanometer process and therefore could not be manufactured at the new plant in Singapore, the expansion could free up production capacity at other factories where Apple's chips can be manufactured and help to relieve global shortages.

Beyond the plans for a new plant in Singapore, TSMC is also building a $12 billion factory in Arizona to manufacture five-nanometer chips. TSMC's main factories are located in Taiwan, but it already operates a factory in Camas, Washington, as well as design centers in Austin, Texas and San Jose, California, meaning that the Arizona facility will be its second manufacturing site in the United States. TSMC is also building a new factory in Japan with help from the Japanese government and investment by Sony.

Top Rated Comments

nikaru Avatar
7 months ago
TSMC should open manufacturing facilities in the US and Europe. Concentrating all manufacturing power in a single region only create risks, as geopolitical factors such as wars or armed conflicts, or natural disasters or pandemics can adversely impact the whole worldwide supply chain. It appears that we haven't learned anything from Covid19. For example, an earthquake in South China Sea can create tsunami that can impact both Singapore and Taiwan. If there is an armed conflict between China and Taiwan in the future, the current chip shortage would seems like a joke in comparison to what we would face. European and American politics should wake up and act fast.
Score: 11 Votes (Like | Disagree)
TheYayAreaLiving ? Avatar
7 months ago
I’m all up for this. Singapore is a great location. There is no drama over there.
Score: 8 Votes (Like | Disagree)
adamw Avatar
7 months ago
More Chip Fabs would be great for TSMC and Apple, especially with Intel and others desiring to use more TSMC capacity. Having more chip manufacturing options is essential for the global supply chain.
Score: 7 Votes (Like | Disagree)
ian87w Avatar
7 months ago

Don't try to build anywhere else like France, Germany oh.. Canada, US.. No way.. Stay away from those places.
Simple geography, which location is closer to the main assembling factories.

By the way, the article did mention fabs in the US as well.
Score: 6 Votes (Like | Disagree)
Leon Ze Professional Avatar
7 months ago
Diversity of geographic locations is only a good thing for companies reliant on computer chip manufacturing for there electronic products.

Especially considering tensions over Taiwan ?? due to the elephant in the room - China ??.
Score: 6 Votes (Like | Disagree)
zubikov Avatar
7 months ago
How is there possibly any room in Singapore for a manufacturing plant? It's ~280 sq miles, that's as big as Lexington, KY in the US, which is the 30th largest city by size. However, Singapore has 5.6MM people (between NYC and LA's population), and it's full up to its borders.
Score: 5 Votes (Like | Disagree)

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