Sony Considers New Semiconductor Factory in Kumamoto Peninsula, Japan: "Strengthening Ties with TSMC"

Review of Factory Groundbreaking in 2024 Gosi-si
TSMC Plans to Supply Logic Semiconductors
Expectation to Secure Integrated Image Sensor Production System

[Image source=EPA Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Sony, the world leader in the image sensor market known as the "eye of the industry," is reportedly considering establishing a new factory in Kumamoto Prefecture, Japan. The plan is to strengthen ties with Taiwan foundry (semiconductor contract manufacturer) TSMC, which is building a semiconductor factory in Japan, to secure semiconductor supplies for image sensors.

On the 16th, Nihon Keizai Shimbun reported that Sony has conveyed its intention to build a new factory in Kumamoto Prefecture to several suppliers and local officials. It is known that Sony is reviewing a site within a new industrial complex near the existing Kumamoto factory of its semiconductor subsidiary, Sony Semiconductor Solutions, which handles semiconductor business in Kumamoto Prefecture.

Sony plans to invest trillions of won in the factory construction, aiming to start construction as early as 2024 and operate the factory after 2025.

Sony's decision to make this investment is interpreted as a move to strengthen cooperation with TSMC, the world's largest foundry company. In Kikuyo Town, Kumamoto, where Sony Semiconductor Solutions' factory is located, a semiconductor factory of JASM, a TSMC subsidiary jointly funded by TSMC and Sony, is being built.

Nihon Keizai Shimbun reported that Sony intends to establish a supply system by utilizing logic semiconductors produced at JASM's factory for its image sensor manufacturing. Through cooperation with TSMC, Sony appears determined to make the Kumamoto factory a main production base for image sensors.

The Nihon Keizai Shimbun stated, "Since high-end smartphones are equipped with more image sensors, market demand is increasing," and added, "If Sony establishes a semiconductor factory near the TSMC factory, it is expected to have an organically connected integrated production system."

The image sensors Sony plans to produce at the new factory are semiconductors that convert light entering through camera lenses into digital signals and are used in various fields such as smartphones and vehicles. Sony's market share was 44% as of last year. Following Sony, Samsung Electronics holds the second-largest market share (18%) and is accelerating product diversification and new technology development to fiercely pursue the lead.