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Sumitomo Electric To Double 5G Chip Production In US To Meet Shortage

Japanese chipmaker Sumitomo Electric will double supply capacity within its U.S. operations, amidst the continuing supply shortage.

Sumitomo has set up a factory in New Jersey to produce 5G chips, using gallium nitride — a glasslike material– rather than silicon, in its production chain. It offers increased communications capacity and lower power consumption.

The production (and therefore, the retail) price is higher, but adoption of gallium nitride chips is increasing, and is expected to supersede silicon.

Sumitomo is planning to supply US and European units of Ericsson and Nokia.

Biden recently floated a bill that will invest US$52 billion in semiconductor production and R&D in the U.S.



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