The logo of Sony Corp is seen at the CP+ camera and photo trade fair in Yokohama, Japan, Feb. 25, 2016. REUTERS/Thomas Peter/File Photo

TOKYO, Nov 9 (Reuters) – Sony Group (6758.T) on Tuesday said it will invest about $500 million in a joint venture with Taiwan Semiconductor Manufacturing Co’s (2330.TW) (TSMC) that will build a $7 billion chip plant in Japan.

Construction of the factory, which local media last month said will supply semiconductors to Sony’s image sensor business, will begin in 2022, with production slated to begin at the end of 2024, the companies said in a press release.

The decision marks a success for Japanese industry ministry officials, who want TSMC to build plants to supply chips to Japan’s electronic device makers and auto companies as trade frictions between the United States and China threaten to disrupt supply chains and demand for the key component grows.

“The fab is expected to directly create about 1,500 high-tech professional jobs and to have a monthly production capacity of 45,000 12-inch wafers,’ Sony and TSMC said.

The project has “strong support from the Japanese government,” they added, although they did not say whether that included financial backing.

Amid growing tension with mainland China, TSMC has become concerned about the concentration of chipmaking in Taiwan, which produces most of the world’s advanced semiconductors.Reporting by Ju-min Park and Tim Kelly; Editing by Kirsten Donovan Editing by Louise Heavens

Our Standards: The Thomson Reuters Trust Principles.


You May Also Like

Oil rises on declining inventories and weaker dollar

Oil prices edged higher on Thursday, supported by a sharp decline in U.S. crude stocks and a weaker dollar, though gains were capped by an OPEC+ decision to stick to its policy of gradually increasing output.

Biden pledges to tackle monopolies, supply shortages as prices rise

President Joe Biden pledged on Thursday toroot out anti-competitive business practices and ease construction materials shortages andtransportation backups that are causing price hikes across the country.

GameStop gains as traders await quarterly report

GameStop’s (GME.N) stock jumped 7% on Wednesday before the company was due to release its quarterly results, which a cult following of individual investors will scrutinize for progress in the videogame retailer’s turnaround amid this year’s rally in its shares.