Sony, Taiwan Semiconductor Sign JV To Build Chip Plant In Japan

Sony Group Corp. (SONY) announced on Tuesday that it signed a joint venture deal with Taiwan Semiconductor Manufacturing Co. or TSMC to invest a sum of $500 million for building a $7 billion chip plant in Japan.

The work on the plant will begin in 2022 and production will begin by the end of 2024, the companies said in a statement. The plant would be supplying semiconductors to Sony's image sensor business.

The companies said, "The plant is expected to directly create about 1,500 high-tech professional jobs and to have a monthly production capacity of 45,000 12-inch wafers."

The new plant will have the capacity to manufacture 22-nanometer and 28-nanometer chips to meet high worldwide demand for specialty chip technologies, the statement said.

The Japanese government has offered all support to the project, but the companies declined to say if it included financial support as well.

Taiwan, which is home to chip makers like TSMC, has become the center of all the moves undertaken to solve a chip shortage crisis across the world, which has stopped the production of many electric vehicles and also affected the consumer electric market all over the world.

In the coming three years, TSMC plans to spend $100 billion to increase chip capacity and is in the process of constructing a $12 billion chip fabrication plant in the Arizona.

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