Sony and TSMC to Jointly Build Next-Gen Image Sensor Plant in Japan

Bloomberg, citing sources, reported that Sony (SONY-US) and TSMC (2330-TW) (TSM-US) are in talks to jointly build a semiconductor fabrication plant in Japan, with a combined investment of up to 1 trillion yen (approximately $6.4 billion).

According to sources, Sony Semiconductor Solutions, a subsidiary of Sony, will collaborate with TSMC to co-develop next-generation image sensors targeting automotive and robotics applications. Both companies have declined to comment on the matter.

This investment plan was previously reported by the Nikkei. It marks the latest move in Sony's strategy to shift its image sensor business toward a 'light-asset' model. In recent years, Sony has increasingly focused its resources on intellectual property areas such as music publishing rights, film content, and gaming IPs.

Following the news, Sony's stock rose 2.2% during morning trading on Monday (10th), while TSMC's shares also gained 1.7%.

The joint venture plant is expected to be located in Kumamoto Prefecture, Kyushu—the same site as TSMC's existing Japanese wafer fabrication facility. The companies previously stated that they may consider expanding the plant if further subsidies and support from the Japanese government are secured.

Although Sony is only a minority shareholder in TSMC's Kumamoto plant, it will take a controlling stake and become the majority shareholder in this new joint venture.

Headquartered in Tokyo, Sony has long been the primary supplier of high-end image sensors for major global manufacturers such as Apple (AAPL-US), Huawei, and Samsung Electronics (005930-KS). Recently, the company has been actively expanding its sensor technology into emerging markets such as automotive and robotics.