Taiwan Semiconductor looking to Singapore to build chip factory: report
Taiwan Semiconductor (NYSE:TSM) is looking into building a chip manufacturing plant in Singapore as the world grapples with a prolonged shortage of semiconductors, The Wall Street Journal reported.
The news outlet, citing people familiar with the matter, said the plan is still under discussion and no decision has been made. However, it added that the Singapore government could help with the plant and there are discussions between the company and Singapore's Economic Development Board.
Taiwan Semiconductor (TSM) shares fell more than 1% to $89.48 in premarket trading on Thursday.
Taiwan Semiconductor (TSM), which makes chips for clients such as Apple (AAPL), Advanced Micro Devices (AMD) and Nvidia (NVDA), has previously said it would spend as much as $44 billion this year in capital expenditures to help deal with the chip shortage that has crimped supply chains across the world.
Taiwan Semi (TSM) is reportedly looking at the plant as making chips between seven and 28 nanometers, which are older generation chips and used in cars, smartphones and other electronics.
On Apple's (AAPL) earnings call, Chief Executive Tim Cook noted much of the chip shortfall the globe is dealing with revolves around "legacy nodes," or older chips.
Taiwan Semiconductor (TSM) has worked to expand its global footprint with factories all over the world, including one in Arizona that is behind schedule.
The company also recently started construction on a plant in Japan.
Last week, it was reported that Taiwan Semiconductor Manufacturing (TSM) has started to inform some of its customers that it will raise its prices between 5% and 9%, starting next year.