Nikkei Claims That Sony and TSMC Will Invest $6.3 Billion To Jointly Produce Image Sensors

The Nikkei business daily said on Monday that Taiwan’s TSMC (2330.TW) and Sony Group (6758.T) want to invest approximately 1 trillion yen ($6.32 billion) to jointly produce next-generation microchips used in image sensors.

According to the report, a joint venture that is around 60% owned by Sony and 40% by TSMC will begin commercial manufacturing in the Kumamoto prefecture of southern Japan as early as 2029.

The two tech behemoths announced in May that they will establish a joint venture in Japan to develop and produce next-generation image sensors by fusing TSMC’s manufacturing and process technology capabilities with Sony’s experience in sensor design.

At the time, Sony and TSMC also stated that the collaboration would investigate prospects in real-world AI applications including robotics and automobiles.

TSMC is the largest contract chipmaker in the world, whereas Sony is the largest manufacturer of image sensors used in cars and smartphones.

While TSMC did not immediately respond to Reuters’ request for comment, Sony declined to comment on the Nikkei article.