This action would mostly benefit Apple.
The Taiwan Semiconductor Manufacturing Company (TSMC) is said to be in talks with the Singaporean government about establishing a facility there.
TSMC is well known for producing Apple’s A-series and M-series chips, as well as AMD processors, but the company also makes display drivers and power management chips, which are in low supply due to COVID-19-related supply constraints. Apple has already spent $6 billion on supply limitations in the last two quarters, and that figure might rise to $8 billion.
The Singapore plant, according to the Wall Street Journal, would potentially help alleviate the shortage by producing more of these key chips. According to reports, TSMC is looking at whether production lines for seven to 28 nanometer circuits are viable. This would be built on earlier manufacturing technology that is already used in vehicles, smartphones, and other electronics.
The new factory is still in the works and has not yet been finalised.
Why are they moving?
Other factors have prompted TSMC to seek a new plant in a different nation. The first is that it would be easier to work with China, which has a tumultuous relationship with the country, and it would avoid too much chip manufacture in one country.
The corporation also wants to develop six factories in the United States, but has run into a number of roadblocks in the year since the plans were first disclosed. Opening a plant in Singapore will help with global diversity while perhaps avoiding the shortage of manufacturing talent in the United States as well as the high cost of chip fabrication, according to TSMC founder Morris Chang.
TSMC isn’t the only Apple supplier attempting to diversify its manufacturing in response to the supply chain issue; Quanta Computer, the sole provider of high-end MacBook Pro models, has also been looking into relocating production from Shanghai to the Chongqing factory to assist relieve supply shortages.
TSMC hits Intel for its ‘futile’ US expansion plans.