TSMC and Sony want to help end chip shortages

TSMC and Sony want to help end chip shortages

The global chip shortage may soon create some unexpected allies in Japan. As Reuters reports , cited by the Nikkei publication Sony and TSMC are considering jointly setting up a semiconductor factory in Kumamoto Prefecture in western Japan. TSMC would have majority control but would be in a location near Sony's image sensor factory. It is planned that the Japanese government will cover up to half of the investment, and the total will be around $7 billion.

It is estimated that, if everything goes as planned, the factory would be ready in two years, however, the two brands refuse to comment on this matter and on this forecast. However, this news comes in the direction of the efforts that have to be made to try to circumvent the microprocessor crisis, which currently, is already affecting several areas, namely in the technology sector.

Sony itself is being affected as several of the brand's products use chips. However, Sony Interactive Entertainment recently stated that it has purchased enough chips for the PS5 to meet its sales target for the current fiscal year.

TSMC and Sony want to help end chip shortages

TSMC, the world's largest contract chipmaker and a major supplier to Apple Inc (AAPL.O) , said in July it was considering a plan to start production in Japan.

The vast majority of analysts estimate that the global chip shortage will last until 2023, and the possibility of this partnership between Sony and TSMC could be important to solve this problem.

Given the current situation, major companies such as Nokia, IBM and TSMC have already stated that the climate of great tension between the United States and China is contributing to the shortage of chips. Given its current situation, Japan is in a better position to overcome this difficulty and begin to increase domestic chip production.

Source: Reuters