Sony to invest $ 500 million in new TSMC chip factory in Japan

TOKYO, Nov. 9 (Reuters) – Sony Group (6758.T) said on Tuesday it would invest around $ 500 million in a joint venture with Taiwan Semiconductor Manufacturing Co’s (2330.TW) (TSMC) that will build a chip factory from $ 7 billion in Japan.

Construction of the plant, which local media reports will supply semiconductors to Sony’s image sensor business last month, will begin in 2022, with production scheduled to begin in late 2024, the companies said in A press release.

The move marks a success for officials at Japan’s Ministry of Industry, who want TSMC to build factories to supply chips to electronics makers and automakers in Japan amid trade friction between the United States and China threatens to disrupt supply chains and as demand for the key component increases.

“The plant is expected to directly create around 1,500 high-tech professional jobs and have a monthly production capacity of 45,000 12-inch wafers,” Sony and TSMC said.

The project enjoys “strong support from the Japanese government,” they added, although they did not say whether this included financial support.

Amid rising tensions with mainland China, TSMC has become concerned about the concentration of chip manufacturing in Taiwan, which produces most of the world’s advanced semiconductors.

Reporting by Ju-min Park and Tim Kelly; Editing by Kirsten Donovan Editing by Louise Heavens

Our Standards: Thomson Reuters Trust Principles.

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