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Sony and TSMC might invest in a chip plant together

Two Japanese firms, Sony and TSMC, are considering investing in a chip plant together to overcome the effects of the chip shortage.

by Kerem Gülen
11 October 2021
in Business, Corporate
Reading Time: 1 min read
Sony and TSMC might invest in a chip plant together
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Sony and TSMC are considering investing $7 billion in a chip factory together, according to Nikkei Asia. Insiders say that TSMC would have majority ownership, and the plant would be located on Sony property near its image sensor factory. The Japanese government agrees to pay half of the $7 billion costs, according to the reports.

Sony and TSMC considering building a chip plant together

The facility would manufacture chips for cameras, automobiles, and other purposes. As a result, Denso, the car parts firm, is said to be interested in the project. If the plan is approved, the factory will be operational by 2024. Sony and TSMC have not made any official statements yet.

Sony and TSMC might invest in a chip plant together
The worldwide chip shortage is expected to last until 2023

The worldwide chip shortage is expected to last until 2023, according to some analysts, and that’s assuming demand doesn’t outpace expectations. This would assist Sony, TSMC, and the rest of the Japanese technology sector recover from the shortage.

By 2024, highly linked and semi-autonomous cars should be more widespread, and it’s no secret that cameras are essential even in low-cost smartphones. A new plant may be essential to ensuring that these technologies continue on track.

Tags: chipChip ShortagefactorySonytsmc

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