Taiwan Semiconductor Manufacturing Co (TSMC) and Sony Group have teamed up to build a $7 billion chip plant in Japan, reports Reuters.
Both companies have stated that once the factory is up and running, it will supply semiconductors to Sony’s image sensor business, beginning in 2022, with production slated to begin at the end of 2024.
Sony’s contribution to the same will be about $500 million, it said in a separate statement.
According to Reuters, the decision marks a success for Japanese industry ministry officials, who want the world No.1 contract chipmaker TSMC to build plants to supply chips to Japan’s electronic device makers and auto companies.
The move has been particularly welcomed as trade friction between the U.S. and China threatens to disrupt supply chains and demand for the key component grows.
“The fab (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,” Sony and TSMC said in a joint statement.
According to the companies, the plant will produce 22-nanometer and 28-nanometer chips to address a strong global demand for speciality chip technologies.
Taiwan, home to chip makers like TSMC, has been at the forefront of resolving the global shortage of chips that has negatively impacted auto production lines and consumer electronics worldwide.
TSMC on its part has pledged to spend $100 billion over the next three years to expand chip capacity.
It is also building a $12 billion chip fabrication plant in the U.S. state of Arizona, reports Reuters.
Image and content: Lothan Morad-Pinterest/Reuters