Taiwan Semiconductor Manufacturing Company (TSMC), a multinational semiconductor contract manufacturing and design company, is in discussions with the Singaporean government to establish a plant in the country.

The new manufacturing facility, should it go ahead, would help alleviate the global shortage of semiconductors. It is expected TSMC could make a multi-billion-dollar investment in the new plant. A final decision has not yet been made and feasibility studies are still ongoing.

TSMC currently has a $12bn facility in Phoenix, Arizona, US, where it will begin manufacturing 5nm chips in 2024. The plant will have the capacity to produce 20,000 wafers monthly.

TSMC is the world’s largest semiconductor foundry and employs more than 56,000 people worldwide. The company has offices in North America, Europe, Japan, China and South Korea.