TSMC Said to be Eyeing Singapore for Fab Expansion

[TheLostSwede]

The rumour mill never seems to stop churning when it comes to TSMC and now the company is said to be looking at the tiny nation of Singapore for a future fab. This time the information comes via the Wall Street Journal rather than the usual Taiwanese sources and although the publication points out that no decision has been made at this point in time, it says that TSMC is apparently in talks with the Economic Development Board of Singapore. The official statement from the TSMC on the matter is that the company "doesn't rule out any possibility but does not have any concrete plan at this time".

The potential Singapore Fab would be producing 28 to 7 nm chips, in other words, quite far from TSMC's cutting edge nodes. However, TSMC is already building a similar facility in the southern city of Kaohsiung in Taiwan that's scheduled for opening in 2024. As such, the nodes used in a future facility in Singapore might change depending on when the fab will open and it might end up producing chips on more advanced nodes as well. As these fabs take a few years to get going, they're not projects that are started on a whim. We should also mention that TSMC already has a joint venture in Singapore together with NXP, called SSMC, which also produces for third parties.



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[CallandorWoT]

I still say TSMC is making a huge mistake building in drought ridden states in USA, when instead they should have contacted right wing tax haven states near the five great lakes... TSMC will regret it in the end, when they see how expensive it will be to get fresh water to their factory in the southwest. Might be ok now, but its going to get bad, really bad. I think it will anyway, we'll see.

Singapore is probably a mistake, if I am not mistaken they have close ties to China, so if anything ever happens with China and Taiwan, Singapore will probably go with China and as we have seen Russia seize other countries factories recently, Singapore will probably do the same to TSMC in the allied spirit with China...

TSMC is a rich company, but not a very smart or strategic one, meh.

 

[TheLostSwede]

I still say TSMC is making a huge mistake building in drought ridden states in USA, when instead they should have contacted right wing tax haven states near the five great lakes... TSMC will regret it in the end, when they see how expensive it will be to get fresh water to their factory in the southwest. Might be ok now, but its going to get bad, really bad. I think it will anyway, we'll see.

Why is Intel building fabs right next door though? Not saying you're wrong here, just curious why both companies picked Arizona, outside of tax cuts.

Singapore is probably a mistake, if I am not mistaken they have close ties to China, so if anything ever happens with China and Taiwan, Singapore will probably go with China and as we have seen Russia seize other countries factories recently, Singapore will probably do the same to TSMC in the allied spirit with China...

They do indeed, but Singapore has the workforce, as there are a lot of foundries there already. It means it's easier to hire the right staff.

TSMC is a rich company, but not a very smart or strategic one, meh.

Well, where else do you suggest they should build fabs that has the kind of workforce that's trained to operate a semiconductor fab? It's not something you get into at night school exactly. They're always going to have to "poach" some people from the competition where they set up, to have some senior staff that can teach the n00bs. There are only so many places that offer this kind of talent in the world.

 

[CallandorWoT]

Why is Intel building fabs right next door though? Not saying you're wrong here, just curious why both companies picked Arizona, outside of tax cuts.

They do indeed, but Singapore has the workforce, as there are a lot of foundries there already. It means it's easier to hire the right staff.

Well, where else do you suggest they should build fabs that has the kind of workforce that's trained to operate a semiconductor fab? It's not something you get into at night school exactly. They're always going to have to "poach" some people from the competition where they set up, to have some senior staff that can teach the n00bs. There are only so many places that offer this kind of talent in the world.

Intel is also stupid, for the same reasons. They will regret the lack of fresh water in the next ten years in Arizona. I believe Indiana/Wisconsin/Minnesota, etc would have matched the tax benefits to TSMC to build there next to the Great Lakes, as far as the talent pool goes, I would argue a lot of people are getting sick of big city life, and could easily be enticed with large hiring bonuses and moving fees covered to relocate to smaller cities/towns near wherever they build the factory. I may be very wrong about that assumption though.

 

[TheLostSwede]

Intel is also stupid, for the same reasons. They will regret the lack of fresh water in the next ten years in Arizona. I believe Indiana/Wisconsin/Minnesota, etc would have matched the tax benefits to TSMC to build there next to the Great Lakes, as far as the talent pool goes, I would argue a lot of people are getting sick of big city life, and could easily be enticed with large hiring bonuses and moving fees covered to relocate to smaller cities/towns near wherever they build the factory. I may be very wrong about that assumption though.

I don't think you're wrong, especially now with the crazy inflation, on top of many people realising that living in a tiny flat near the centre of the city isn't all what it was cracked up to be when you can't go outside. The pandemic had changed people's priorities.

 

[NC37]

I still say TSMC is making a huge mistake building in drought ridden states in USA, when instead they should have contacted right wing tax haven states near the five great lakes... TSMC will regret it in the end, when they see how expensive it will be to get fresh water to their factory in the southwest. Might be ok now, but its going to get bad, really bad. I think it will anyway, we'll see.

Singapore is probably a mistake, if I am not mistaken they have close ties to China, so if anything ever happens with China and Taiwan, Singapore will probably go with China and as we have seen Russia seize other countries factories recently, Singapore will probably do the same to TSMC in the allied spirit with China...

TSMC is a rich company, but not a very smart or strategic one, meh.

Singapore pretty much is the golden spoon child of SE Asia. Not just China but everyone pours money and talent into it. Just China does indeed have major influence over it. Been there a few times. The surrounding nations could be better off but they often bow out on deals to benefit Singapore. They get the pick of things, the rest get the scraps. The influence of such a tiny city state in the region is nuts.

 

[Tigger]

on top of many people realising that living in a tiny flat near the centre of the city isn't all what it was cracked up to be when you can't go outside.

The same could happen to London

 

[TheLostSwede]

The same could happen to London

It's been happening all over the world as far as I've seen.

 

[Count von Schwalbe]

It's been happening all over the world as far as I've seen.

The entire state of California...

 

[TheLostSwede]

The entire state of California...

Well, California seems to be having a wide range of issues that has cause the perfect storm for a lot of people there I'd say. Firestorm that is.

 

[Count von Schwalbe]

Well, California seems to be having a wide range of issues that has cause the perfect storm for a lot of people there I'd say. Firestorm that is.

"Wide range of issues" may be insufficient terminology...
I am surprised that TSMC is not moving to less politically dangerous/unstable areas in general.

 

[MachineLearning]

I am surprised that TSMC is not moving to less politically dangerous/unstable areas in general.

Me too. China absorbing Taiwan (whether slowly or by force) is more likely and imminent than ever. Regardless of anyone's feelings on that, it's hard to argue that TSMC would be allowed to have anywhere near the same amount of western business that it currently does. TSMC is irreplaceable right now, which is very frightening.