Sony and TSMC plan to build a joint venture wafer fab in Japan

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In May of this year, it was reported that the Japanese authorities suggested that Sony and Taiwan Semiconductor Manufacturing Co. (TSMC) jointly invest in the construction of a wafer fab, which will use a 20nm-40nm process to produce chips to meet the needs of domestic Japanese companies. As one of the world’s major manufacturing countries, Japan has a large demand for chips in the fields of automobiles, home appliances, and consumer electronics, but it generally orders production from foundries such as TSMC, Samsung, or UMC.

Sony is set to be an investor in — and a major customer of — TSMC’s first chip plant in Japan. (Source photo by AP and Reuters)

According to Nikkei Asia, the Japanese government is likely to be involved and assume as much as half of the investment in the $7 billion projects. In addition to Sony and TSMC, there may be another investor in the project, which is said to be Japan’s Denso (DENSO) Co., Ltd., which is the world’s top supplier of auto parts and systems. As the automotive industry shifts to electric vehicles, it is not surprising that companies in related industries seek further development. It is said that this fab will be located in Kumamoto Prefecture, where Sony also has a factory to produce image sensors.

If the project goes well, this will be TSMC’s first fab in Japan. It is understood that the fab will focus on image sensors, image processors, and chips required for electric vehicles in the early stages. Due to the construction period of several years, the situation may change. The Japanese government is seeking to reach an agreement with TSMC to promise that the chips produced by the new fab will be given priority to the Japanese market.

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