Sony and TSMC may collaborate to resolve the global chip shortage.

The global chip deficit is resulting in some of the most bizarre tech collaborations. As a result, according to Nikkei Asia's sources, tech giants Sony and TSMC are reportedly "considering" establishing a joint semiconductor facility in Japan.

The two corporations will build a production unit in Japan's western Kumamoto Prefecture, according to these sources. Although TSMC will have the majority of control over this factory, it will be located near Sony's image sensor factory on Sony's land. The Japanese government will fund up to half of the $7 billion investment needed for this project.

This plant will make semiconductors for cameras, automobiles, and other items. Denso, a Japanese auto components company, is said to be interested in the project for this reason.

The factory is expected to be operational by 2024 if everything goes according to plan. Both Sony and TSMC have declined to comment on the news, but TSMC has previously stated that it is "actively exploring" prospects for a project like this.

The worldwide chip shortage is rapidly gaining momentum and is anticipated to last until 2023, so this collaborative initiative comes as no surprise. And assuming that demand does not increase faster than expected.

If this project succeeds, it will benefit not only TSMC and Sony in the long term, but also the global chipset market as a whole.