TAIPEI—Taiwan Semiconductor Manufacturing Co (TSMC) said on Tuesday it will set up a new chip factory in the island’s southern city of Kaohsiung as the world’s largest contract chipmaker bids to boost production amid a global chip shortage. TSMC, a major Apple supplier, said in a statement the new chip fabrication plant will produce advanced 7-nanometer chips as well as mature 28-nanometer semiconductors. The construction of the factory will begin in 2022 and production is scheduled in 2024. The company declined to say how much it was planning to spend for the new plant. Tech powerhouse Taiwan, home to chip makers like TSMC, has become front and centre of efforts to resolve a shortage of chips that has shut global auto production lines and impacted consumer electronics makers around the world. Earlier on Tuesday, Japan’s Sony Group said it would invest about $500 million in a joint venture with TSMC …