Taiwan Semiconductor Considers Establishing 12-Inch Factory in Singapore Due to Favorable Incentives

According to a report from Taiwan's Electronic Times, Taiwan Semiconductor Manufacturing Company (TSMC) may reconsider setting up a 12-inch factory in Singapore due to the attractive conditions offered by the country. TSMC had previously announced plans to build new factories in Japan and the US, and was also evaluating the possibility of establishing a wafer plant in Europe, with reports suggesting that Germany had been selected as a potential location. However, due to budgetary constraints and difficulties in meeting TSMC's conditions, the company's plans for a European factory have slowed down.

TSMC has stated that its plans for a German factory are still under evaluation, and it is not ruling out any other locations at this time. The latest reports suggest that TSMC may have an opportunity to expand its 28nm and below 12-inch factory in Singapore, due to urgent demand from customers such as Infineon and the favorable conditions offered by the Singapore government, which include land, water, tax incentives, and human resources support.

TSMC is familiar with Singapore, having previously established an 8-inch factory in partnership with Philips Semiconductor (now NXP) and the Singapore government in 2000. Its subsidiary, World Advanced Packaging Electronics, also acquired the 8-inch factory of Grace Semiconductor in Singapore. In fact, due to the more favorable conditions offered by Singapore, World Advanced Packaging Electronics' Chairman Fang Lue has already indicated that he does not rule out the possibility of relocating the company's planned first 12-inch factory from Taiwan to Singapore.

According to official Singapore data, out of the 15 top international IC design firms, 9 have a presence in Singapore, and there are at least 14 semiconductor wafer factories and 20 semiconductor packaging and testing plants in the country. Coupled with neighboring Malaysia, which holds over 10% of the world's total packaging and testing capacity, Singapore has become a global hub for semiconductor manufacturing.

Semiconductor manufacturers believe that if TSMC adjusts its plans, it may have an impact on the EU's plans for independent semiconductor development, worth billions of euros.