TSMC and Sony to team up on $7 billion Japanese plant?

Will TSMC soon set up shop in Japan too? A new report from Nikkei Asia claims the Taiwanese semiconductor foundry leader is in talks with Sony about a joint-venture. According to the rumor, the firms are eyeing a $7 billion semiconductor factory in western Japan. Half of the funding is expected to come from the Japanese government and Denso, a key supplier of Toyota, is reportedly also interested in participating in the project.

Japan's top auto parts maker Denso is also looking to participate through such steps as setting up equipment at the site. The Toyota Motor group member seeks stable supplies of chips used in its auto parts.

Sony may also take a minority stake in a new company that will manage the factory, which will be located in Kumamoto Prefecture, on land owned by Sony and in an area adjacent to the latter's image sensor factory, according to multiple people familiar with the matter. The factory will make semiconductors used in camera image sensors, as well as chips for automobiles and other products, and is slated to go into operation by 2024, the people said.