(TheLibertyRevolution.com)- As the world continues to face a chip shortage, Sony Group Corp of Japan and TSMC of Taiwan are reportedly planning to team up and build a brand new chip factory in Japan. It will help keep up with rising demands for computer chips from cell phone, tablet, computer, and car makers all over the world.
The Japanese government is reportedly prepared to pay some $7.15 billion USD, or 800 billion Yen, to assist with the establishment of the new factory – presumably on the basis that it will create new jobs in Japan.
The plant is expected to be built in Kumamoto, in the southern region of Japan. It will specifically focus on producing chips for camera image censors used in mobile devices and semiconductors for vehicles, as well as various other chips that remain in short supply. A report by Nikkei said that the factory is expected to begin operations by 2024, giving the two companies only a couple of years to build the factory and get the wheels moving.
Hopefully by then another chip manufacturer hasn’t already stepped in to fill the gap…
Neither TSMC nor Sony have commented on the news, and Japanese auto parts manufacturer Denso – which is expected to participate in establishing the new factory – has not offered any insight into their plans either. However, the fact that Denso is involved suggests that many of the chips expected to be built in the new factory could be used to make vehicles in Japan.
As the world becomes more connected and cars become more complex, chips are going to become one of the most valuable products on the planet.
Don’t expect this to be the only new chip manufacturing plant established in the next few years…and they won’t all be in China!