By now you must be aware of the power chip shortage crisis which is leading to massive production delays for all consoles. These power-regulating chips serve a very important purpose, and many electronic devices cannot run without it. Console devices like Sony PS5 have taken a great hit because it is a necessary component in their production. Efforts are being made to avert this crisis, but it seems unlikely to end till pandemic is here.
Sony and TSMC Partnership
In a recent development, Taiwan’s TSMC and Japan’s Sony Group Corp are considering to jointly build a chip factory in Japan. Apparently, the Japanese government is ready to pay for some of the investment of about 800 billion yen ($7.15 billion), reported Nikkei. TSMC is world’s largest contract chipmaker and semiconductor manufacturing company.
The proposed plant in Kumamoto, is expected to produce these semiconductors/power regulating chips which are facing shortage. This shortage has severely hit the automobile, camera manufacturing as well as gaming console manufacturers. Being in the initial stages, it is likely to start operations by 2024, according to the reports.
Honestly, while this might be great for the future, it will surely not help the ongoing crisis. 2024 is too far away till then things will already get better. According to recent statements by AMD and Toshiba the crisis might start getting better by the later half of 2022. So, quite evidently, this merger might not do anything to ease the global chip shortage we are facing right now.
Why Is There a Shortage of PS5?
First of all, it’s not just PS5 that is facing the supply crisis as the pandemic has hit all of the console manufacturing industry. These chips are a major component of the CPUs and GPUs of electronic devices. These materials needed to make the chips aren’t being excavated because of the pandemic and till then, all manufacturing is stuck. Now, this was the primary reason for the lack of supply. Another reason for it is exceptionally high demand.
In the pandemic, people are exploring their passions and hobbies increasingly and gaming is one of them. Hence, the demand for consoles is rising at a fast pace amidst COVID-19 and the supply has taken a hit because of the basic material shortages. This has trapped PS5 in a vicious cycle of demand-supply which is getting more and more intense. It is our hope that all of it would end as soon as the pandemic ends, and the console industry emerges stronger than ever.
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