Sony Group and Taiwan Semiconductor Manufacturing Co. (TSMC) are discussing a joint investment of around ¥1 trillion (around US$6.4 billion or RM27 billion) to build a new image sensor factory in Japan. The factory is expected to start operations in 2029.
The investment is aimed at meeting the growing demand for sensors for technologies such as AI-powered robots and self-driving vehicles.
Both technologies require more sensors to function more efficiently.
Sensor Demand Expected to Increase
In May, Sony and TSMC announced preliminary discussions to build a new production line and development facility at Sony's image sensor factory in Kumamoto, southern Japan.
The collaboration is seen as reducing Sony's cost burden in an industry that requires large capital investments, in addition to providing TSMC with a more stable source of income.
Sony is also expected to be a major shareholder in the joint venture. Sony currently supplies premium image sensors to companies such as Apple, Huawei and Samsung.
The company also wants to expand the use of its sensors to the automotive and robotics industries.
Japan May Provide Financial Support
The collaboration between Sony and TSMC has also caught the attention of the Japanese government. Japanese Trade Minister Ryosei Akazawa said the government would consider providing financial support for the joint venture.
The investment is also part of Sony's strategy to reduce its dependence on physical assets and focus more on intellectual assets such as music, films and video games.
If realized, the project is expected to strengthen Japan's position in the semiconductor industry and help meet the growing global demand for sensors along with the development of AI, robotics and autonomous vehicles.
