Sony is planning to produce its own chips in Partnership with TSMC Japan amid a Worldwide Chip Shortage

According to reports Sony is continuously in talks with TSMC Japan to build a microprocessor chip in partnership at the manufacturing plant in Taiwan.

The factory is aimed to be in operation by 2024 and is willing to produce microprocessor chips for multiple games, consoles, and a variety of other electronic goods.

The Japanese government is reportedly willing to pour in a portion of the project. For this, an estimated cost of $7.17 billion (800 billion yen) is suggested.

Reports at the Reuter stated that both the parties (TSMC & Sony) involved in the agreement have not made any comments on the progress of how far they are as of yet.

Several manufacturing firms have allegedly said that the scarcity of microprocessor chips will persist till next year. In the same context, Phil Spencer, the Xbox CEO stated in one of his comments that the scarcity of the chips will remain affecting the world for some more time. He added,

“There are many sorts of pinch points in that process.”

However, undoubtedly, chip shortage is one of the pinch points of the market whose demands are high.

Toshiba spokesperson affirms that the chip scarcity will affect the console business and it may impact greatly on the gaming systems till 2023.

“Until at least September next year, chip supply will be extremely tight.” In other situations, we may not be able to completely serve some clients until 2023.”

Takeshi Kamebuchi, Toshiba’s Director cautioned 

“Game console manufacturers are among the most demanding clients, and I apologize for their disappointment; none of them are completely satisfied.”

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The microprocessor chip scarcity has a massive impact on not only the automotive industry, but also the aircraft, and electronic industry to name a few.

In this regard, an executive order is issued by the Joe Biden administration to review the availability and the supply of some of the most essential items. Microprocessor chips are one of them.

Earlier this year, President Biden said,

“I’m ordering top officials in my administration to engage with industry leaders to develop solutions to the semiconductor shortage. Congress has approved a measure, but it will cost $37 billion to ensure that we have the necessary capacity. That’s something I’ll advocate for as well.”

Indeed, TSMC Taiwan and Sony are two popular manufacturers of semiconductors. TMSC of Taiwan is an active Apple supplier and fully compatible to fill the gap.

However, the international scarcity of the semi-conductors will prevail until the factory becomes fully operational. Experts say that the scarcity will take some more years to be recovered and the gaming systems will face challenges this year as well.

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