The factory, which will distribute resources to all types of companies, will start production in 2024.
Supply shortages have hit the tech sector hard. As is evident, consoles such as PS5, Xbox Series and Nintendo Switch have been slowing down their production due to this problem. Sony has already been considering getting involved in the construction of a chip factory. This was announced just a month ago, and today we now know that the Japanese government has set its plans in motion with a future factory that will cost $7 billion, of which Sony will invest $500 million.
As Bloomberg reporter Gearoid Reidy shares on his Twitter account, the Taiwan-based semiconductor company has already sent a press release confirming its intentions. According to the statement, construction of the chip will begin in 2022, but component production will have to wait until 2024. However, there is a great deal of ambition behind these plans, as the factory will be capable of producing 45,000 units of semiconductor material per month.
Sony confirms it will invest in a $7 billion chip plant that TSMC will build in Kumamoto. The project will have "strong support" for the Japanese government, for whom this is a MASSIVE win. Sony will have a stake in the plant of less than 20%, investing about $500m. pic.twitter.com/vmnyhChMTZ
— Gearoid Reidy (@GearoidReidy) November 9, 2021
Sony has confirmed its participation by investing $500 million, representing less than 20% of the factory’s shares as part of this goal. However, its involvement will be part of a plan to prevent the supply problem from dragging on for longer, as Sony Semiconductor Solutions Corporation CEO Terushi Shimizu explains: “Although the global shortage of semiconductors is expected to continue, we hope the partnership with TSMC (Taiwan Semiconductor Manufacturing Company) to help ensure a stable supply of chips, not only for us but also for the industry as a whole.
After all, and to reiterate what was said in the first paragraph, supply shortages have severely disrupted the balance between supply and demand in the technology arena. And we seem to be heading into an uncertain 2022, as Phil Spencer has predicted that the console shortage will continue into next year. We’re already experiencing PS5 and Xbox Series supply shortages and a 20% reduction in Nintendo Switch manufacturing. However, companies are not giving up on one of the most critical times of the year so that the Xbox Series will be beefing up its stock, and Sony is reloading the UK with PS5 for the Christmas campaign.