Sony and TSMC discuss $6.4 billion sensor factory

• Sony Group and Taiwan Semiconductor Manufacturing Company are discussing a joint image sensor factory investment of about ¥1 trillion ($6.4 billion), according to Bloomberg.
• Sony shares rose as much as 2.2% and TSMC shares gained as much as 1.7% following the report.
• The proposed facility would target automotive and robotics demand, with production planned for 2029 if approved.

Sony Group (NYSE:SONY) and Taiwan Semiconductor Manufacturing Company (NYSE:TSM) are in discussions to invest about ¥1 trillion ($6.4 billion) in a joint image sensor factory in Japan, according to Bloomberg.

The proposed facility would be built within Sony’s existing image sensor campus in Kumamoto Prefecture, with Sony Semiconductor Solutions expected to hold about 60% of the venture and TSMC the remaining 40%.

A definitive agreement has not been signed, and the investment amount and deployment timeline remain under discussion, according to reports.

The companies are considering the facility to support expected demand from automotive and robotics markets, where image sensors are used in advanced systems, while Japan’s government is considering financial support for the project.

Following the report, Sony Group shares rose as much as 2.2% and TSMC shares increased as much as 1.7% in trading.

Sony said in May it had signed a memorandum of understanding with TSMC to establish a joint venture, which would represent a step toward reducing its reliance on fully owned semiconductor manufacturing operations.

The proposed venture follows the companies’ previous partnership through Japan Advanced Semiconductor Manufacturing, a TSMC-controlled joint venture established in 2021 that operates a semiconductor fabrication plant in Japan.

Sony supplies image sensors to customers including Apple, Huawei Technologies and Samsung Electronics, and has been expanding its focus on automotive and robotics applications.