Taiwan Semiconductor Manufacturing Co (TSMC) (TPE:2330) has received board approval for investments of around $29.4 billion to boost its advanced chip production and packaging capabilities, according to a Wednesday press release.
The investment plans to invest around $16.0 billion on the installation and upgrade of advanced technology capacity, $4.79 billion on advanced packaging, mature and specialty technology capacity, and fab construction and installation of fab facility systems. It has also earmarked $8.62 billion for real estate and capitalized leased assets.
The company's board also approved the formation of a new joint venture with Sony Semiconductor Solutions Corporation to develop and manufacture next-generation image sensors and the subscription in southern Japan. Volume production at the proposed unit is expected to start in 2029.
As per a separate statement, Sony will hold a controlling stake in the joint venture and invest 465 billion yen through a combination of cash and asset transfers, including its newly constructed chip factory in Kumamoto prefecture, while TSMC will invest 282 billion yen.
The JV will serve as a core hub for the development and manufacturing activities required for the volume production of image sensors for smartphones utilizing advanced manufacturing process technology, it said.