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Sumitomo Electric to produce 5G chips in US amid shortage

New Jersey facility to double supply capacity and serve European market

Sumitomo Electric's gallium nitride transistor: Gallium nitride increases communication capacity and reduces power consumption when compared with silicon chips.

OSAKA -- Japanese chipmaker Sumitomo Electric Industries will fabricate semiconductors for 5G base stations in the U.S. from September, Nikkei has learned, amid growing concerns over supply chain disruption due to a global chip shortage.

Sumitomo Electric, which holds a 70% share of the product globally and is a major supplier to Chinese telecom Huawei Technologies, plans to double supply capacity with its U.S. operations.

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