Sony considering investment into billion-dollar chip factory in Japan

By Kes Eylers-Stephenson,
Sony is currently deliberating over building a billion-dollar chip factory in Japan with Taiwan's TSMC, with Japanese government support. This could alleviate some shortcomings in semiconductor manufacture for PS5s, but also the serious pressure from China on the Taiwanese manufacturing industry.

sony new factory

While Nikkei announced the news, Reuters were quickly on the case (thanks, PushSquare). The report states that Sony is considering a large investment into a new Kumamoto-based chip plant with Taiwanese company TSMC. The factory build cost would be half-footed by the Japanese government, with the total bill estimated at $7 billion. The factory would be near another Sony image-sensor factory and be built on Sony land, with the Japanese company taking a stake in the management of the potential factory.

Why is this relevant to PlayStation? Well, with semiconductor shortages mounting in the factories that supply many tech companies, it seems that this would offer Sony a chance to better regulate the number of chips that it could produce. Thus, the company could more reliably produce PS5s and other consoles in the future. Just to be clear, this would be for the very distant future, at minimum 2025. In addition, there is mounting political pressure on Taiwan from China, where TSMC factories and other chip plants are located. Removing the growing threat of disruption to those supply lines is deemed a necessity at this point by the Japanese government. Again, this would help centralise the production of PlayStation console components.

Neither company is commenting on the situation, though the rumoured date for opening is 2024. What do you think? A worthy investment? Or is this all a bit SimCity for you? Build your powerhouse comment down below!
Kes Eylers-Stephenson
Written by Kes Eylers-Stephenson
Hey, I'm Kes! I'm a Staff Writer, and I've been here since 2021. What do I like? The Outer Wilds is top notch. The Witcher 3 blew my mind over the course of five years completing it. I want Burnout back — I really miss crunching mechanical wonders into walls to the sound of Guns N' Roses. Cool, now we are acquainted, I'll see you around.