TOKYO: Japanese giant Sony Group and Taiwan chip titan TSMC said on Tuesday they will invest $4.7 billion to manufacture advanced smartphone image sensors.

Production is slated to begin in 2029.

Sony is to invest 465 billion yen ($2.9 billion) and TSMC 282 billion yen ($1.8 billion) in the joint venture in Koshi City, which lies in southwestern Japan's Kumamoto region, the companies said in a statement.

The venture will serve as a development and manufacturing hub for the production of image sensors for smartphones, they said.

It will be created at a fabrication plant of Sony's semiconductor business subsidiary in Koshi.

Sony is a world leader in the image sensors sector, accounting for over 50 percent of the global market by value.

The use of image sensors for robots and other machines is expected to expand, driven by the growth of artificial intelligence.

The collaboration is aimed at utilizing TSMC's "advanced process technology and manufacturing expertise," while Sony is to take a lead in developing image sensor technologies and product design, the two firms said.

TSMC is already investing in Japan, announcing in February it would produce three-nanometer semiconductors—among the most advanced chips that can power AI systems—at a factory in Kumamoto.

The firm opened its first Japanese chip plant two years ago in the region, touting it as a move to boost the resiliency of chip supply for Japan and worldwide.

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Sony, TSMC to invest $4.7B in advanced image sensors