TSMC has not yet decided on plans to build a facility in Europe as it worries about rising energy prices and inflation, but the Singapore authorities are trying to attract this Taiwanese company by offering generous infrastructure subsidies. Rival VIS already has a facility in Singapore, which it inherited from GlobalFoundries.

Authorities in Singapore are pushing for Taiwan Semiconductor Manufacturing Company (TSMC) to establish a 300mm silicon wafer fab in the country. To entice TSMC, the authorities are offering free land, access to water and energy resources, tax incentives, and access to a developed labor market.

Singapore already hosts regional offices for semiconductor component manufacturers Infineon and several other European companies serving the automotive industry. If these manufacturers agree to receive their orders in the region, it would give TSMC an additional incentive to establish its plant in Singapore instead of Europe.

TSMC has had a presence in Singapore since 1998 when it partnered with NXP Semiconductors and EDB Investments. In 2006, NXP and TSMC acquired a share from a third partner, and together they manufacture products using 200mm silicon wafers at a local facility. Vanguard International Semiconductor (VIS) also has a similar facility in Singapore and is considering building another plant that can process 300mm silicon wafers.