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TSMC and Sony want to help end the chip shortage

The global shortage of chips could soon create some unexpected allies in Japan. Reuters , cited by the publication Nikkei Sony and TSMC are considering joint creation of a semiconductor factory in Kumamoto province in western Japan. TSMC would have majority control but would be located close to Sony’s image sensor factory. The Japanese government is expected to 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 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 because 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, the world’s largest contract chip maker and main supplier to Apple Inc (AAPL.O), said in July that it was considering a plan to start production in Japan.

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

Taking into account 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 has been contributing to the shortage of chips. Due to its current situation, Japan is in a better position to overcome this difficulty experienced and start increasing the domestic production of chips.

Source: Reuters

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