TAIPEI (Taiwan News) — Sony Group said on Tuesday (Jan. 25) it has completed the initial round of funding for Taiwan Semiconductor Manufacturing Co.’s (TSMC) upcoming chip fab in Japan.
The investment was made through Sony Semiconductor Solutions (SSS), Nikkei reported. Sony plans to spend US$500 million (NT$13.91 billion) over the next two years on the project and will retain a minority interest of less than 20%, according to the report.
TSMC announced last November it would construct its first Japanese facility in Kumamoto Prefecture through a joint-venture with SSS called Japan Advanced Semiconductor Manufacturing. The entire project is expected to cost around US$7 billion, with TSMC initially investing around US$2.12 billion.
The Japanese government is expected to provide a subsidy of around US$3.49 billion for the chip plant. The subsidies are connected with legislation that goes into effect in March meant to bolster chip manufacturing in Japan.
Construction is expected to begin sometime this year, with production coming online by the end of 2024. The plant will produce 22 and 28-nanometer chips used in microcontrollers and image sensors.
The fab should create around 1,500 jobs and will have a monthly capacity of 45,000 12-inch wafers.