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In view of the shortage of chips, Sony is considering building a chip factory

Japanese publication Nikkei reported that Sony Corporation is considering building a chip factory in Japan in partnership with Taiwan Semiconductor Manufacturing Company to address the ongoing chip shortage.

Chip supply bottlenecks have hurt numerous companies across the tech industry amid the pandemic, and Sony is not immune to the problem. While PlayStation 5 consoles make up only a small part of the equation, SIE has often cited a chip shortage as the reason for the PS5’s delivery problems. Manufacturing of other Sony products that use chips, such as cameras, has also been affected.

Nikkei claims (reported via Reuters) that if things move forward, the Kumamoto, southern Japan plant will be built and the Japanese government appears ready to invest 800 billion yen ($ 7.15 billion) in the project. Both Sony and TSMC declined to comment on the report.

Sony Interactive Entertainment recently claimed to have purchased enough chipsets for the PS5 to meet its current fiscal year sales target. However, the Japanese Toshiba Corporation sounded the alarm in September, stating that “the supply of chips will remain very tight until at least September next year” and that some customers, including console manufacturers, “will not be fully served by 2023”.

Interestingly, Xbox CEO Phil Spencer recently commented on the issue, and while he doesn’t dismiss chip shortages as one of the reasons for the PS5 and Xbox Series X / S delivery bottlenecks, he said there were several “tweaks” in the process to bring the consoles to consumers, and the scarcity cannot be attributed solely to chip supply.

[Source: Reuters via Eurogamer]

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