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Sony Eyed $6B Investment In Japan's Smartphone Sensor Factory

  • Sony Group Corp (NYSE: SONY) weighed an investment of 800 billion yen ($5.83 billion) to build a factory to produce smartphone image sensors in western Japan.

  • The plant would be located in Kumamoto prefecture. Sony plans to bring it online by 2025, Reuters reports.

  • Taiwan Semiconductor Manufacturing Company Ltd (NYSE: TSM) is also building a significant chip plant in Kumamoto.

  • Also Read: Rapidus Eyes Big Investment To Boost Japan's Chip Trajectory, Collaborates With IBM To Commercialize 2-Nm Tech

  • Sony and auto parts maker Denso Corp (OTC: DNZOF) (OTC: DNZOY) took a minority stake in the $8.6 billion project.

  • Sony plans to source logic chips for image sensors from the TSMC plant, Nikkei Asia reports.

  • Sony carefully weighed the timing and scale of the investment in light of concerns about the outlook for the global economy.

  • Sony's existing Kumamoto facility produces sensors for various applications, including smartphones, vehicles, and industrial equipment. Apple Inc (NASDAQ: AAPL) CEO Tim Cook visited the facility this week.

  • Sony is the largest supplier of CMOS image sensors for smartphone cameras and autos. Sony held a 44% share of the global market by value in 2021, versus Samsung Electronics Co, Ltd (OTC: SSNLF) at 18%.

  • As per IC Insights, the global market for CMOS image sensors will likely grow to $26.9 billion in 2026, up 30% year-on-year.

  • Price Action: SONY shares closed lower by 3.1% at $78.72 on Thursday.

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