Sony, TSMC to Invest $6.4 Billion in Japanese Sensor Plant

Sony Group Corp and Taiwan Semiconductor Manufacturing Co (TSMC) are in talks to spend a combined ¥1 trillion (US$6.4 billion or RM25.8 billion) on their planned image sensor factory in Japan, according to a person familiar with the matter. The two companies are seeking to begin production in 2029, the person said, asking not to be named because the talks are private. No time frame was given for the investment under discussion, they said. The Japanese company’s shares rose as much as 2.2%, while TSMC’s gained 1.7% on Monday. TSMC and the Japanese company’s chip arm, Sony Semiconductor Solutions Corp, are eyeing demand for artificial intellligence (AI)-wielding robots and self-driving cars, which are expected to require more sensors to function. In May, the two partners announced preliminary talks to build new production lines and development facilities within Sony’s existing image sensor factory in southern Japan’s Kumamoto. “This is a virtually risk-free investment for Sony and TSMC,” Toyo Research Advice Co analyst Hideki Yasuda said. The joint venture lowers Sony’s burden in an arena that requires big capital spending to stay relevant, while securing steady revenue for TSMC, he said. https://www.bloomberg.com/news/articles/2026-08-10/sony-tsmc-to-invest-6-4-billion-in-joint-chip-plant-in-japan