Sony to Build New Semiconductor Facility in Southwest Japan

Business Semiconductor

A person who is familiar with the matter claims that Sony Group Corp. intends to invest around one hundred billion yen in the construction of a new semiconductor plant in the southwest of Japan to produce the semiconductors that are used in smartphones.

The new factory in Kumamoto Prefecture is expected to begin operations in 2025 or later, but Sony Group may begin construction as early as 2024. Sony Group is a major image sensor manufacturer worldwide.

The source says that Sony is making this move to boost domestic production of semiconductors in the face of rising global demand in line with digitalization. In addition to building a facility, Sony has also partnered with Taiwan Semiconductor Manufacturing Co. (TSMC), which is the world’s largest contract chip producer, to produce cutting-edge sensors in Kumamoto, Japan.

The joint-venture plant with TSMC, Denso Corp., Sony will receive approximately 476 billion yen in subsidies from the Japanese government, with production expected to begin by the end of 2024.

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Seven additional major Japanese companies, including Sony and Toyota Motor Corp., have established Rapidus Corp to manufacture next-generation 2-nanometer chips in Japan. Production will begin in 2027.

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