TOKYO, Aug 10 (Reuters) – Sony Group and Taiwan’s TSMC plan to spend around ‌1 trillion yen ($6.32 billion) to jointly ‌make next-generation microchips used in image sensors, the Nikkei ​business daily said on Monday.

A joint venture owned about 60% by Sony and 40% by TSMC will start commercial production as early ‌as 2029 in ⁠southern Japan’s Kumamoto prefecture, the paper said.

The two tech giants said ⁠in May they planned to form a joint venture in Japan to develop and ​manufacture next-generation ​image sensors, combining ​Sony’s sensor design expertise ‌with TSMC’s manufacturing and process technology strengths.

Sony and TSMC also said then that the partnership will explore opportunities in physical artificial intelligence applications such as automotive and robotics.

Sony ‌is the world’s largest maker ​of image sensors widely ​used in ​smartphones and autos, while TSMC is ‌the world’s largest contract ​chipmaker.

Sony declined ​to comment on the Nikkei report, while there was no immediate response from TSMC ​to Reuters’ ‌request for comment.

($1 = 158.2700 yen)

(Reporting by ​Wen-Yee Lee, Sam Nussey, Kiyoshi Takenaka; ​Editing by Kate Mayberry)