Sony, TSMC to invest US$6.4bil in joint chip plant in Japan

Sony Group Corp and Taiwan Semiconductor Manufacturing Co (TSMC) are discussing a joint investment of over US$6.4 billion for a new factory in Japan, according to a source familiar with the plans. The Japanese electronics giant's chip division, Sony Semiconductor Solutions Corp, and TSMC will collaborate on producing next-generation image sensors for use in robots and automobiles. The manufacturing facility is expected to commence operations in 2029, according to the source.

The investment proposal, first reported by the Nikkei, represents the latest move in Sony's strategy to shift towards a more resource-efficient model for its image sensor business. The company is increasingly relying on intellectual property, such as music distribution rights, film and video game franchises. As part of this transition, Sony's shares climbed up to 2.2%, while TSMC's rose by 1.7% on Monday.

The joint venture will be initiated in Kumamoto, a southern area of Japan where TSMC already operates a chip fabrication plant. The companies have suggested that the project could potentially expand further if the Japanese government offers its support. Sony, as a minority shareholder in TSMC's chipmaking site in the region, will become the controlling shareholder of the new joint venture.

The company has previously supplied top-tier image sensors to industry leaders like Apple, Huawei, and Samsung. More recently, Sony has been working to broaden its sensing business into sectors like automotive and robotics.