Joint venture for chips

The Sony Group and Taiwan Semiconductor Manufacturing Co (TSMC) are in talks to spend around NZ$10.8 billion on an image-sensor factory in Japan.

The two companies are seeking to begin production in 2029, although no time frame has been given for the investment under discussion.

TSMC and the Japanese company’s chip arm, Sony Semiconductor Solutions, are eyeing demand for artificial intelligence-wielding robots and self-driving cars, which are expected to require more sensors to function. 

The two companies announced preliminary talks in May to build new production lines and development facilities at Sony’s existing image-sensor factory in the city of Kumamoto.

Sony has supplied premium image sensors to the likes of Apple, Huawei Technologies and Samsung Electronics, and is seeking to expand its offerings to cars and robots. 

The joint venture is part of its push toward a more asset-light approach in sensors as it focuses more of its resources on intellectual property, such as music distribution rights, film and video game franchises.