If you've been having trouble getting a hold of a PS5 or Xbox Series X this year, first join the club, next spare a thought for the many millions affected around the world, and not just gamers.
Unless you've been living under a rock in 2021 (and I wouldn't blame you, frankly) you may have heard of the global computer chip shortage. Although it is a complicated and many-layered issue, basically the pandemic has caused a surge in demand for devices that use computer chips, while manufacturing hasn't been able to keep up with the demand. If you want a better idea of the causes of the computer chip shortage, you can read this highly detailed interview with a genuine expert on the subject.
Computer chips power many devices on which people rely: smartphones, computers (obviously), but even things that may not seem as obvious, such as automobiles and even white goods such as refridgerators and microwaves. And as pandemic-related lockdowns have caused many to stock up on laptops, gaming PCs, and consoles, the computer chip shortage will likely continue as these devices don't show signs of being in less demand.
Now, many large tech companies are racing to build chip-making factories, although these large facilities are very expensive and require sizable investments. Sony is the latest such company to follow this trend.
The Japanese giant is teaming up with Taiwanese heavyweight Taiwan Semiconductor Manufacturing Co. (TSMC) to build a chip factory in Japan. The joint venture was signed this week, according to a report by business publication Nikkei, and is a collaboration to build a $7 billion plant.
TSMC is the world's biggest chipmaker and supplies chips to Apple for their iPhones, and to many, many other companies. But there's only enough chips even the Taiwanese company can produce. Sony is set to invest $500 million and is therefore the junior partner, holding no more than a 20 percent stake in the joint company. Sony are themselves a provider of image sensors for smartphones, cameras, and cars, and is TMSC's largest client in Japan.
However, don't expect these chips to make supplies of the elusive PlayStation 5 less elusive. The new chip factory isn't expected to start producing until 2024, and even then computer chips come in all sorts of varieties. Sorry, prospective PS5 buyers.