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Remember those microprocessor chips? They're still not easily available. A strange domino effect that began with US trade restrictions on China has ended with a supply shortage in gaming consoles. In order to combat this shortage, which may last well into next year, Sony may be considering manufacturing its own chips in partnership with TSMC.
According to Reuters, a Nikkei report said that Sony and TSMC have considered setting up a plant in Kumamoto, Japan. It will be ready by 2024 and manufacture microprocessors for various products which have suffered due to the shortage; presumably video game consoles will be a part of this as well. However, Reuters states that both parties have refused to comment. The Japanese government is reportedly ready to pay for some of the investment of about 800 billion yen ($7.15 billion).
We've heard from a number of major companies that the global chip shortage will last well into the next year. Most recently, Xbox boss Phil Spencer noted that the console shortage will continue for a while. He said that "the markets where the demand is, there are multiple kinds of pinch points in that process.” One of those pinch points is without a doubt the chip supply.
Last month, a representative from Toshiba mentioned that the chip shortage could affect game consoles well into 2023. "The supply of chips will remain very tight until at least September next year. In some cases, we may find some customers not being fully served until 2023,” said Takeshi Kamebuchi, a Toshiba director. “Game console makers are among the customers making the strongest demands and I’m sincerely sorry for their frustration as none of them have a 100% satisfaction.”
The shortage is so severe that it has affected several industries including automobile, aviation, and home appliance just to name a few. U.S. president Joe Biden signed an executive order that will review supply chains for four critical products, including semiconductor chips. "I'm directing senior officials in my administration to work with industrial leaders to identify solutions to the semiconductor shortfall," said Biden earlier this year. "Congress has authorised a bill but they need... $37 billion to make sure that we have this capacity. I'll push for that as well."