Sony Group Corp and Taiwan Semiconductor Manufacturing Co (TSMC) are in talks to invest a combined ¥1 trillion (US$6.4 billion) in a planned joint chip plant in Japan, with Bloomberg reporting that production could begin in 2029.
The proposed facility in Kumamoto, southern Japan, will be operated through Sony Semiconductor Solutions Corp and TSMC and is expected to focus on next-generation image sensors for robots and vehicles. Sony is expected to be the controlling shareholder of the joint venture.
The project could be expanded if the Japanese government provides backing, while the two companies are already working together in the region where TSMC operates its own semiconductor fabrication plant.
Sony shares rose as much as 2.2% on Monday while TSMC gained 1.7% in morning trading following the report.
The investment would also deepen Sony’s push into sensing applications beyond its established image sensor business. The Japanese group supplies premium image sensors to major technology companies including Apple, Huawei and Samsung and has increasingly targeted automotive and robotics applications.
For TSMC, the proposed facility would add to its manufacturing presence in Japan as demand grows for advanced chips used in emerging technologies, particularly robotics and automotive systems.
