According to the Wall Street Journal, Apple chip supplier TSMC is exploring the possibility of building a new factory in Singapore to address the global chip shortage.

TSMC is Apple's sole chip supplier and is responsible for making all of the company's custom chips, such as the A15 Bionic and the M1 While Apple's chip orders have been prioritized over many other companies, limiting the impact of shortages on Apple customers, TSMC has still suffered from global supply chain issues as the world's biggest contract chip maker.

There are plans to build a multi-billion dollar factory in Singapore. The government of Singapore may help to fund the construction of the plant according to individuals who are familiar with the matter.

Older production technologies would be used in the proposed production lines. While Apple's latest chips are manufactured with TSMC's five-nanometer process and therefore could not be manufactured at the new plant in Singapore, the expansion could free up production capacity at other factories where Apple's chips can be manufactured and help to relieve global shortages.

TSMC is building a $12 billion factory in Arizona to make chips with five-nanometers. TSMC already operates a factory in Camas, Washington, as well as design centers in Austin, Texas and San Jose, California, meaning that the Arizona facility will be its second manufacturing site in the United States. TSMC is building a new factory in Japan with help from the Japanese government and Sony.