TSMC To Combat Chip Shortage With Singapore Plant
Taiwan Semiconductor Manufacturing Company (TSMC), who’s operations have been stunted by COVID-19 related lockdowns, are now in talks with the Singaporean government about a plan to open a plant in the country.
TSMC is responsible for manufacturing chips for a wide range of companies, as they develop AMD processors, Apple’s A-series and M-series chips and chips for power management and display drivers.
The slowdown in their operations due to the pandemic has had a dramatic affect on global chip supply, costing Apple $6 billion USD ($8.52 billion AUD) over the last two quarters. The suggested Singapore plant could alleviate the shortage.
TSMC is currently looking at the feasibility of production lines for seven to 28 nanometer chips, which would be based on older production technology used in a wide range of devices.
However, the production shortage is not the only reason TSMC would look to move to China. The complicated relationship between China and Taiwan prevents them from having too much Chinese infrastructure. It would also help with TSMC’s global diversification, following the issues the company face with their plans for six US plants.