The claims that Sony and TSMC companies will jointly produce semiconductor chips have been on the agenda for a while. As the global chip crisis continues, a new development has emerged regarding these rumors. Accordingly, two large companies are forming a partnership.
Technology manufacturers who want to mitigate the effects of the chip crisis have reached an agreement. The companies that will establish the factory announced the agreement with a press release. Here are the details of that deal…
Sony and TSMC are building a factory!
Stock index Nikkei announced that the two companies have teamed up to set up a factory in Kumamoto, Japan. Reuters also reported the development in question. According to these latest developments, the rumors of the partnership of the two big companies that came out recently turned out to be true.
According to the news, Sony Group and Taiwan Semiconductor Manufacturing Co (TSMC) issued a press release. The two companies will set up a $7 billion chip facility in Japan. Sony has announced that it will invest approximately $500 million in this venture.
Thus, companies will try to meet the strong global market demand. In other words, they want to end the crisis that has put chip manufacturers, from cars to phones, in a difficult position. Sony’s $500 million investment will enable TSMC to create a local subsidiary called Japan Advanced Semiconductor Manufacturing.
In the said factory, high-end chips of 5 nanometers and smaller will not be produced. Instead, they will start with 22nm and 28nm technology. Considering that Intel’s 14nm CPUs have been on the market for a few years, it might not sound like a huge leap forward. But it can be ideal in areas where cost and reliability are more important than performance, such as cars and industrial equipment.
We will not immediately see the effect of this step. Because Sony and TSMC plan to start the construction of the factory in 2022. The plant is likely to start production by the end of 2024 at the earliest. However, it will have an effect to overcome the crises in the coming years.
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