Sony Group and Taiwan's TSMC are set to invest approximately 1 trillion yen (about $9 billion) in the production of next-generation image sensor semiconductors in Kumamoto, Japan, where a magnitude 7.1 earthquake occurred last month.
According to Nikkei Asia on August 10, Sony and TSMC plan to begin mass production of the next-generation image sensors in Kumamoto as early as 2029. The total investment is expected to be around 1 trillion yen.
The production will be managed by a joint venture, with Sony contributing about 60% and TSMC about 40%. The companies aim to finalize their investment plans soon and establish the joint venture by March 2027, within the 2026 fiscal year.
The production line will be located at Sony Semiconductor Solutions' image sensor factory in Kōshi, Kumamoto Prefecture, which is approximately 30 kilometers from the earthquake's epicenter and sustained minimal damage. A large-scale research and development facility will also be established. Sony and TSMC are discussing potential government subsidies to support their investment with Japan's Ministry of Economy, Trade and Industry.
The decision to continue investing in Kumamoto despite the earthquake is attributed to the region's favorable conditions for semiconductor production. Kumamoto is rich in water resources essential for semiconductor manufacturing and offers relatively inexpensive electricity generated from renewable sources such as geothermal and solar energy. Both companies plan to maintain semiconductor production investments in Kumamoto in the long term.
The high-performance camera sensors produced by the joint venture are expected to be supplied to Apple for its iPhones. The companies also plan to enhance the performance of image sensors to target the physical AI market.
Nikkei noted that Sony aims to strengthen its technological edge in the image sensor market through its partnership with TSMC, while TSMC seeks to accumulate related technologies to expand into the physical AI sector.
Meanwhile, it has been reported that the recent earthquake in Kumamoto Prefecture has resulted in 39 fatalities to date.
* This article has been translated by AI.
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