Joint venture targets automotive and robotics demand with ¥1 trillion investment in Kumamoto Prefecture facility.
Sony Group and Taiwan Semiconductor Manufacturing Co. will jointly invest ¥1 trillion ($6.4 billion) in a new image sensor factory in Japan, set to begin production in 2029. The facility will be located within Sony’s existing Kumamoto Prefecture campus, with Sony Semiconductor Solutions holding a 60% stake and TSMC taking 40%.
The venture aims to capitalize on growing demand for advanced sensors in automotive and robotics sectors. Japan’s government may provide financial support, Trade Minister Ryosei Akazawa indicated. The partnership follows a May memorandum of understanding, marking Sony’s shift toward a lighter manufacturing model.
Shares of Sony rose as much as 2.2% on Monday, while TSMC gained up to 1.7%. Analysts described the deal as low-risk, easing capital pressures for Sony while securing steady revenue for TSMC.