Sony and TSMC Partnering Up to Combat Chip Supply Shortage Issue

Source: Taiwan Semiconductor Manufacturing Co., Ltd

With the global chip supply shortage going for far longer than expected, Sony will be partnering up with Taiwanese semiconductor company TSMC to remedy the issue. This is what’s expected to happen.

Sony and TSMC Partnering Up to Combat Chip Supply Shortage Issue

Sony and TSMC will reportedly be teaming up to help with the ongoing global chip supply shortage. Both companies are looking at a partnership to co-establish a new semiconductor factory somewhere in Japan, which is expected start operation by 2024 if everything goes well.

According to sources familiar with the matter, this new factory will be based at a location owned by Sony in Japan’s Kumamoto prefecture. This is relatively close to their image sensor factory and will see an investment of USD $7 billion (RM29.2 billion approximately) from both them and TSMC combined.

The factory will be manufacturing chips used for cameras, cars, and other products, most notably highlighting the ones that have seen a drop in production capacity as a result of the global chip supply shortage. While both companies have declined to comment on the matter, Japanese automotive parts manufacturer Denso is said to be interested in the project as well.

It’s not going to fix things anytime soon, especially since it’s expected to begin operations in 2024, but a step today will ensure a better tomorrow. As it is, plenty of companies are already expecting this issue to continue for at least a few more years so for now, we will just have to deal with it. We will report more on this and similar happenings as soon as information becomes available so stay tuned.

Source

Pokdepinion: I foresee either more companies hopping on the project as well or running similar initiatives to combat the issue. Either way, it’s kind of sad that we will still be having this issue for years to come.