Sony Group and Taiwan Semiconductor Manufacturing Co. are in talks to spend a combined ¥1 trillion ($6.4 billion) on their planned joint factory in Japan, according to a person familiar with the plans.
The Japanese company’s chip arm Sony Semiconductor Solutions and TSMC are partnering on next-generation image sensors for robots and cars. The factory will begin production in 2029, the person said, asking not to be named because the talks are private. Representatives of Sony and TSMC did not immediately respond to a request for comment.
The investment under discussion, which was earlier reported by the Nikkei, is the latest in Sony’s transition toward a more asset-light approach with its image sensor operations. The company has been focusing more of its resources on intellectual property like music distribution rights, film and video game franchises.
Sony’s shares rose as much as 2.2%, while TSMC’s gained 1.7% Monday morning.
The project will get its launch in Kumamoto Prefecture, where TSMC has set up its own chip fabrication plant, and may expand if the Japanese government provides backing, the companies have said.
Sony, which is a minority shareholder in TSMC’s chipmaking site in the region, will be the controlling shareholder of the new joint venture.
The Tokyo-based company has supplied premium image sensors to the likes of Apple, Huawei Technologies and Samsung Electronics. It has in recent times sought to expand its sensing business into applications in cars and robotics.