Tokyo, 26 June, /AJMEDIA/
Sony Group Corp will set up a new image sensor factory in Kumamoto Prefecture, the head of its semiconductor unit said, as it seeks to strengthen its chip operations and deepen ties with a Taiwanese chip giant that is building a production base in the area.
The plant, which is expected to produce smartphone sensors, will be built on a 270,000-square-meter site it plans to acquire this year in Koshi in the southwestern Japan prefecture, Sony Semiconductor Solutions Corp President Terushi Shimizu told reporters.
There are “growing expectations” for the development of sensors as one of the sources of value for smartphones, Shimizu said, adding that this trend is expected to continue for a while.
He did not specify the amount of investment or give a timeline for building the plant.
The move comes after Sony last month unveiled a plan to spin off its financial unit to focus its resources on the semiconductor and entertainment businesses.
Later that month, Sony said it would acquire a piece of land in Koshi, although the specific purpose was not disclosed.
Kumamoto has been attracting sizable chip-related investments in recent years. Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker, is building a chip factory there, with an eye to setting up another nearby.
Sony has formed a joint venture with TSMC and car parts manufacturer Denso Corp to manage the first TSMC factory under construction. The new plant is expected to provide chips to Sony and other customers.
Shimizu declined to reveal the extent to which Sony would be involved in managing the second TSMC plant. He expressed hope that Sony can help operate this plant with the government support that has also been extended to the first factory.
Sony, the world’s biggest producer of image sensors, plans about 900 billion yen in capital expenditure in the sector in the three years through fiscal 2023.
The Japanese company is expected to maintain the same level of investment for the next three years as well.
Japan, in recent years, has been ramping up its presence in the semiconductor industry as a geopolitically safe investment location amid rising tensions between the United States and China over fears that Beijing is diverting chips to military use.
Against this backdrop, Toyota Motor Corp, Sony Group and six other major Japanese companies formed semiconductor venture Rapidus Corp last year. The state-backed chipmaker aims to begin mass production of chips with state-of-the-art 2-nanometer technology in five years.
