Japan's Sony to Collaborate with Taiwan's TSMC on Semiconductor Factory Construction

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] On the 28th (local time), Bloomberg reported that Japan's Sony has expressed the possibility of cooperating with Taiwan's TSMC, which announced plans to build a semiconductor factory in Japan.

According to the report, Hiroki Totoki, Sony's Chief Financial Officer (CFO), stated at the earnings announcement that they are in discussions with TSMC and the Japanese government to assist in establishing TSMC's factory in Japan.

CFO Totoki said that investment is also being considered as one of the cooperation methods with TSMC, and that an official announcement will be made once a decision is reached.

He explained, "The basic policy is to support the construction and operation of TSMC's factory in Japan," adding, "We expect significant benefits from strengthening cooperation with TSMC."

He also stated, as reported by Kyodo News, "Stable semiconductor procurement is a key issue, and (TSMC's factory) could be the solution."

TSMC, the world's largest foundry (semiconductor contract manufacturer), plans to establish a new factory in Japan producing semiconductors using 22 to 28 nanometer (nm = one billionth of a meter) processes mainly for automotive use.

Regarding this, Kyodo cited sources saying that Sony will participate in the operation of TSMC's Japanese factory, and the global automotive parts manufacturer Denso is also considering joining the partnership.

Earlier, Japanese media reported that TSMC began constructing a factory in Kumamoto Prefecture, where Sony's digital camera image sensor factory is located, starting in 2022, with mass production expected to begin around the end of 2024.

The Japanese government, having experienced a semiconductor shortage, has announced plans to provide subsidies to attract investment in the domestic semiconductor industry.