PlayStation 5, Sony ready to co-finance TSMC factory amid processor shortage

In a context of a global shortage of processors, the founder Taiwan Semiconductor Manufacturing Company (TSMC) is in advanced talks with the Japanese group Sony, which is having great difficulty in being delivered with components for its new PlayStation 5, for installation in western Japan of a new semiconductor plant.

According to the online daily Nikkei Asia, the total investment in the project is estimated at 800 billion yen ($ 7 billion). Besides Sony, a subsidiary of the Toyota group, Denso, also in search of a reliable supply of automotive chips could participate in the investment, in addition to the Japanese government which would cover half of the total amount.

Sony in action for the erection of a new factory with TSMC

According to information published by Nikkei Asia, Sony is also rotting to become a minority shareholder of a new company in charge of this factory. Precision, the latter would be built on land owned by Sony and located in Kumamoto Prefecture in an area adjacent to the Japanese giant's image sensor factory according to several people familiar with the matter.

This news plant would manufacture semiconductors based on integrated image sensors, as well as chips for automobiles and other products (PS5 therefore), and should enter service by 2024.

If the project comes to an end, this would be TSMC's first such operation in Japan.