Asian Tech Press (OCT 29) -- Sony Group said it is considering building a new chip manufacturing plant in Japan cooperating with chip foundry TSMC.

At the end of May this year, it was reported that the Japanese government wanted TSMC and Sony Group to invest 1 trillion yen ($9.2 billion) to build Japan's first 20nm chip factory. According to a proposal put forward by Japan's Ministry of Trade and Industry, the possible factory would be built near Sony's image sensor factory in southwestern Japan.

In mid-June this year, TSMC was considering building its first chip factory in Japan, which would be close to a Sony plant in Japan.

In mid-July this year, TSMC confirmed that it was considering building its first chip factory in Japan and is currently in talks for this purpose and has launched due diligence.

In late July, media reports said TSMC plans to open a chip factory in Japan in 2023, which will supply image sensors mainly to the company's largest Japanese customer, Sony.

Earlier this month, TSMC and Sony are considering investing about 800 billion yen (about $ 7 billion) to build a joint venture chip factory in Japan, according to reports. The plant will be built on Sony's land in Japan's western Kumamoto Prefecture, adjacent to Sony's image sensor factory. Construction will begin next year and is expected to go into operation in 2024.

TSMC said the plant will focus on making less advanced chips, which are typically used in parts such as cars and smartphone image sensors.

On Thursday, Sony Group confirmed that it is in talks with TSMC about building a chip plant in Japan's western Kumamoto Prefecture. The company said it will discuss the issue with TSMC and Japan's Ministry of Economy, Trade and Industry.