Sony is potentially looking to build a new semiconductor manufacturing facility in Kumamoto Prefecture, Japan.
According to a report from Japan Times, the investment would be worth several billion dollars and would begin construction as early as 2024 with operations beginning in 2025.
Sony already manufacturers image sensors in Kumamoto where Taiwan Semiconductor Manufacturing Co. (TSMC) is also constructing its new state-of-the-art chip fab along with Sony Semiconductor Solutions and Denso.
Called Japan Advanced Semiconductor Manufacturing Inc. (JASM), Sony has invested $500 million in the TSMC fab for a 20% equity stake while it was announced earlier this year that Denso would invest $350 million for a 10% stake in JASM. The Japanese government will also provide $3.5 billion in subsidies to the TSMC joint venture, which aims to start production by the end of 2024.
The Sony fab, along with JASM, is seen as a way for Japan to increase its domestic semiconductor manufacturing to help decentralize the semiconductor supply chain from being in only Asian countries. Japan, as does other countries, has started viewing semiconductors as a matter of not just economic security but national security.
The U.S. and Europe are also investing heavily in semiconductor manufacturing to up their own domestic supply chain with the $52 billion CHIPS and Science Act in America and the $50 billion European Chips Act proposed by the European Union.
Additionally, Sony and seven other major Japanese firms including Toyota have set up a firm called Rapidus to manufacture next-generation 2-nanometer chips in Japan possibly from 2027.
