Ever since the start of the Covid-19 pandemic in early 2020, there has been plenty of shortages and problems with supply chain management, none more so in the Chip industry. The shortage rightly named the "Global Chip Shortage", has caused major price hikes in several industries, mainly the automotive and computer industries. The largest producers of these chips are located in Taiwan and are called "Taiwan Semiconductor Co. LTD." have been having trouble keeping up with the demand and have been falling behind in production, i.e supply.
To combat the high demand, TSMC has teamed up with one of the biggest electronic companies in the world, Sony, in Japan to jointly build a microchip factory. The plant is going to be built in Southern Japan and will produce chips for automobiles, cameras image sensors, and other various products which have been affected by the global chip shortage. The operations are hoped to start in 2024, but as of now there is no further information has been provided.
The reasoning behind this partnership is very interesting to me as it shows a newfound sign of economic partnership between the two East Asian countries. TSMC has been concerned with the longevity and concentration of its chip-making in Taiwan, as China has not ruled out their use of force over this island which they technically have control over. On the other hand, Japan and its officials are worried about the supply chain stability of its various industries, as it has the biggest automotive company in the world, Toyota, and due to this chip shortage, they have been forced to cut production. Either way, you look at this situation, both counties could benefit from this joint production and find new economic growth and political allyship.
Source: https://www.reuters.com/technology/tsmc-sony-eye-joint-chips-factory-japan-govt-help-nikkei-2021-10-08/
1 comment:
There has been a lot of news recently about microchip factories, and especially about them being built. The market for microchips is very sizeable and will only see expansion. This being said, once factories pick up to full production and supply chains are reunited, there will be n influx of microchips for sale that could see prices driven down. This will likely lead to vast improvements in technology and more uses for microchips as their availability increases.
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