Sony, TSMC in talks to set up $6.4B chip factory
What's the story
Sony Group Corp and Taiwan Semiconductor Manufacturing Company (TSMC) are in talks to set up a joint factory in Japan, according to Bloomberg. The proposed facility, which would cost around ¥1 trillion ($6.4 billion), is aimed at producing next-generation image sensors for cars and robots. Production is expected to start by 2029.
Location details
Proposed factory to be located in Kumamoto, southern Japan
The proposed factory will be located in Kumamoto, southern Japan. This is the same area where TSMC has already set up its own chip fabrication plant.
The companies have said that they may expand this project if they get support from the Japanese government.
This investment marks Sony's shift toward a more asset-light business model with its image sensor operations, focusing more on intellectual property like music rights, movies, and gaming.
Market reaction
Shares of both companies rose on the news
Following the news of this potential joint venture, Sony's shares rose as much as 2.2% while TSMC's gained 1.7% on Monday morning.
The Tokyo-based company has been supplying high-end image sensors to tech giants such as Apple Inc., Huawei Technologies Co., and Samsung Electronics Co.
In recent years, it has been looking to expand its sensing business into cars and robotics applications.