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Sony and TSMC in talks for new US$7 billion chip plant in Japan

Sony and TSMC are reportedly in talks to build a new chip plant in Japan. (Image: TSMC)
Sony and TSMC are reportedly in talks to build a new chip plant in Japan. (Image: TSMC)
Sony and TSMC are said to be in discussion to open a new semiconductor factory in Japan. The new plant would produce chips for cameras, cars and other purposes and could help stabilize chip supplies.

The global chip shortage and other global stability issues could be behind a proposed joint initiative between Sony and TSMC to open a chip production plant in Japan. According to both Reuters and Nikkei, the two tech giants are in discussions to open a semiconductor factory in the Kumamoto Prefecture. The proposed site is on land owned by Sony near where it produces its massively in-demand image sensors.

Sony is no stranger to chip design having partnered with IBM and Toshiba to design and develop the Cell processor that powered the Sony PlayStation 3 console. If the plan goes ahead, the factory would be up and running by 2024 and would focus on developing camera chips and silicon for the car market among other segments. Sony could be interested in using the opportunity to develop custom chips for its own Alpha cameras and even silicon for its own Apple Car-like automotive ambitions.

TSMC is currently the major supplier of smartphone silicon for Apple and many other companies. However, it is based in Taiwan which is currently facing an uncertain future as China seeks to assert its control over the country. Decentralising its operations elsewhere in Asia makes strategic sense for the company while it would also help it more easily meet orders for silicon fabricated on its state-of-the-art process nodes. The Japanese government is keen to see the plan come to fruition, offering up to half of the $7 billion project cost.

Buy an unlocked Sony Xperia 1 III smartphone with 12 GB RAM and 512 GB storage from Amazon for US$1,450.


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Sanjiv Sathiah
Sanjiv Sathiah - Senior Tech Writer - 1360 articles published on Notebookcheck since 2017
I have been writing about consumer technology over the past ten years, previously with the former MacNN and Electronista, and now Notebookcheck since 2017. My first computer was an Apple ][c and this sparked a passion for Apple, but also technology in general. In the past decade, I’ve become increasingly platform agnostic and love to get my hands on and explore as much technology as I can get my hand on. Whether it is Windows, Mac, iOS, Android, Linux, Nintendo, Xbox, or PlayStation, each has plenty to offer and has given me great joy exploring them all. I was drawn to writing about tech because I love learning about the latest devices and also sharing whatever insights my experience can bring to the site and its readership.
contact me via: @t3mporarybl1p
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2021 10 > Sony and TSMC in talks for new US$7 billion chip plant in Japan
Sanjiv Sathiah, 2021-10-11 (Update: 2021-10-11)