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Taiwan Semiconductor Manufacturing Co., or TSMC, is currently the largest chip maker in the world and may be entering into a contract with the Japanese technology and electronics company Close Sony Group. If the plans succeed, investments will be made in building a semiconductor fab.

According to Nikkei Asia, the total investment for this project is estimated at 800 billion yen, or around 7 billion US dollars. In addition, the publication reported that they have the support of the Japanese government, which is ready to shoulder up to half the total.

By accepting direct investment from the Taiwanese semiconductor maker, Japan is hoping to increase the production of high-tech products in the country to revive. It was added that other companies like Denso, Japan’s leading auto parts maker, are also trying to get involved in the project in some way. Denso can do its bit by putting equipment on site if it’s part of the project.

Once a new business is complete, Sony can take a minority stake in it for the management of the chip factory based on will be built on Sony’s property in Kumamoto Prefecture. The factory will produce semiconductors for vehicles and camera image sensors.

Other products can also be manufactured here, and insiders said that 2024 is the target year for operations. Toyota Motor should also look forward to this new chip factory from TSMC and the Sony joint venture in order to have a stable supply of semiconductor parts soon.

Finally, it was mentioned that TSMC had already confirmed the project in Japan in July to be actively examined in cooperation with Sony. By this time, according to Reuters, the company should have already completed its decision on the construction of the plant and the cooperation with the aforementioned Japanese electronics company.

TSMC and Sony are reportedly considering building a chip factory together

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