World’s largest contract manufacturer plans to build more chip factories

World’s largest contract manufacturer plans to build more chip factories

Singapore, 5/20/2022

Apple chip supplier TSMC is in talks to build a new plant in Singapore to address the global chip shortage. The world’s largest contract chip maker could get help from the Singapore government to finance the construction of the plant.

TSMC wants to produce chips with manufacturing processes ranging from seven to 28 nanometers at the plant, which has not yet been confirmed as a project.

While Apple’s latest chips use a five-nanometer process, the facility could free up production capacity at TSMC’s other plants to produce more Apple chips.

The company is also working on plans for a $7 billion semiconductor fab in Japan and is currently building a $12 billion fab in Arizona, both of which are expected to begin mass chip production in 2024.

Last year, TSMC Chairman Mark Liu said the company was looking into possible plans to build production facilities in Germany as well.

According to insiders, TSMC has earmarked an investment budget of $40 billion to $44 billion for the current fiscal year.