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TSMC, Sony plan Japan venture for image sensors

TSMC and Sony Semiconductor Solutions said on May 8 they plan to form a joint venture in Japan to develop and make next-generation image sensors at Sony’s new fab in Koshi City.

Sony will hold a majority stake in the venture.

The company said future investment will depend on demand and Japanese government support.

The companies said the venture will also study sensor uses in automotive and robotics, while Sony has said it is open to outside investors for its chip business.

TSMC and Sony already operate Japan Advanced Semiconductor Manufacturing in Japan, and its first fab began volume production in late 2024.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

This joint venture depends in part on Japanese industrial policy and possible state support

  • The venture may depend on public funding. Japan said it may give Sony Group up to 57 billion yen (US$378 million) for an image sensor plant under construction in Kumamoto Prefecture 1.
  • That subsidy would cover as much as one-third of the plant’s 170 billion yen (US$1.09 billion) cost 2.
  • The money comes through Japan’s Economic Security Promotion Act, which treats semiconductors as strategic for supply-chain security 2.
  • The companies said funding for the planned venture, along with new spending at Sony’s Nagasaki plant, would roll out in stages based on market demand and on the assumption of Japanese government support 3.

Sony is preparing for next-generation sensors, including uses in cars and robotics

  • The planned venture would study sensor demand in automotive and robotics, two fields the companies named as targets 3.
  • Japan’s Ministry of Economy, Trade and Industry, the ministry that oversees industrial policy, expects the Koshi plant to produce 10,000 300-millimeter wafers a month, with shipments starting in May 2029 2.
  • Sony would own a majority stake and keep control of the proposed venture 3.

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