According to some sources, TSMC has not yet finalized plans to build a plant in Europe due to concerns about rising energy prices and inflation, but Singapore authorities are trying to lure this Taiwanese company to their country by offering generous infrastructure subsidies. Rival VIS already has a facility in Singapore, which it inherited from GlobalFoundries.
This will be reported DigiTimes with reference to traditional industry sources. According to them, the Singapore authorities are committed to TSMC building a 300mm silicon wafer processing plant in this tiny state. As factors that make Singapore attractive as a business incorporation location, the country’s authorities are willing to provide free land, access to water and energy resources, as well as tax incentives and a well-developed labor market.
Infineon and several other European manufacturers of semiconductor components for the automotive industry already have regional offices in Singapore. If these customers agree with TSMC to receive their orders in this region, the company has an additional incentive to build its plant in Singapore and not in Europe.
In fact, TSMC has had a presence in Singapore since 1998 through a joint venture with NXP Semiconductors and EDB Investments. In 2006, NXP and TSMC bought a stake from a third partner and now jointly manufacture 200mm silicon wafer products in a local facility. Vanguard International Semiconductor (VIS) already has a similar facility in Singapore but is now considering building another that can make chips from 300mm silicon wafers.