Sony is considering manufacturing its own chips

Sony is considering manufacturing its own chips.

In the face of a chip shortage, Sony and TSMC have teamed up to solve the global chip shortage.

Do you recall the microprocessor chips? They're still hard to come by. A bizarre domino effect that began with US trade sanctions on China has culminated in a gaming console supply shortfall. Sony may explore producing its own chips in collaboration with TSMC to tackle the shortfall, which may extend well into next year.

According to Reuters, Sony and TSMC are considering establishing a factory in Kumamoto, Japan, according to a Nikkei article. It will be operational by 2024 and will produce microprocessors for a variety of goods that have suffered as a result of the scarcity, including video gaming consoles. According to Reuters, both sides have declined to comment. The Japanese government is allegedly willing to pay for a portion of the project, which is estimated to be worth around 800 billion yen ($7.15 billion).

A number of large firms have told us that the worldwide chip scarcity will persist well into next year. Xbox CEO Phil Spencer has stated that the console scarcity will last for some time. "There are many sorts of pinch points in that process," he added of the markets where demand is high. Without a doubt, the chip supply is one of those critical spots.

Earlier month, a Toshiba spokesperson stated that the chip scarcity might impact gaming systems until 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," Toshiba director Takeshi Kamebuchi warned. "Game console manufacturers are among the most demanding clients, and I apologize for their disappointment; none of them are completely satisfied."

The scarcity is so severe that it has impacted a variety of industries, including automotive, aircraft, and household appliances, to mention a few. President Joe Biden of the United States issued an executive order reviewing supply chains for four essential items, including semiconductor chips. Biden stated earlier this year, "I'm ordering top officials in my administration to engage with industrial 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."

Of course, Sony and TSMC are two of the most well-known component manufacturers. For starters, TSMC is an Apple supplier. It will benefit from repairing the shortfall.

Unfortunately, the worldwide chip scarcity is expected to continue for a long time. According to some assessments, it will take a few years for the sector to fully recover from its current challenges.