Japan is investing more than $ 5 billion to address global chip shortages

The world’s largest chip-producing nation is becoming serious.

Japan has set aside $ 5.2 billion (approximately 600 billion yen) to support semiconductor manufacturers in an effort to help address the world’s current chip shortage.

While the funds will go to several chip makers, the most notable among them is the world’s largest, Taiwan Semiconductor Manufacturing Co. (TSMC), according to initial report from tuesday from Nikkei.

Japan is investing $ 5.2 billion in a giant chip company in Taiwan

TSMC also said it would build a new chip plant in Japan for $ 7 billion in a joint effort with Sony Group Corp. Understandably, the Japanese government was pleased. The remaining 200 billion yen of Japan’s new investment will go to preparing other factories for a number of new projects, including one under development by American manufacturer of memory chips Micron Technology Inc and Japan’s Kioxia Holdings, according to the report. Japan remains the world’s largest chip industry since the 1980s. But since then, the nation has fought a tough battle to maintain its competitive advantage in an increasingly busy industry, falling steadily over the past three decades as economic rivals such as Taiwan-based producers continue to narrow the gap.

The global shortage of semiconductor chips has been going on for years

And he couldn’t have come at a better time. The chip shortage became apparent around the same time as the COVID-19 coronavirus crisis reached land in the United States. This moment was horrible, because billions of people around the world are facing months to years of blockade, the only viable way to interact with the outside world was through computers, laptops, mobile phones, TVs, game consoles. Those of us who were lucky enough to work from home depended (and still depend) on the daily work of semiconductor-based machines and the computer chips they make up.

While TSMC is the largest maker of computer chips, Apple Inc. is the largest buyer of semiconductor chips, with Samsung close in second place. In particular, Samsung was the second largest manufacturer after TSMC, in terms of sales. As Samsung occupies both the supply and demand of the computer chip industry, many would think of it as invulnerable to scarcity. But in March 2020, Samsung said it was considering missing the launch of its Galaxy Note smartphone. The reason? “[T]there is a serious imbalance in the supply and demand of chips in the global IT sector, “said Mobile CEO and co-CEO Koh Dong-jin in BBC report. Samsung has not yet released the new product, according to experts 2022 is the earliest thing that can happen. But with Japan using its powerful economic hand to power some of the world’s most powerful chip makers, the global shortage of machines that work with computer chips, including gaming platforms, mobile phones, smart watches, laptops and even Ford nearly 70,000 vehicles without chips waiting in stock, may have finally entered the terminal phase. While we should not expect the world to return to normal by the holidays, it is a fair bet that the end of next year may look very different and for the best.

It was an evolving story and was regularly updated when new information became available.

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