The plant will be located in Kumamoto Prefecture, and Sony does not plan to launch it before 2025.
The Japanese electronics and entertainment conglomerate will carefully consider construction timing and investment size, given concerns about a slowing global economy.
A spokesman for Sony's semiconductor division declined to comment on the news.
Major economies, including the United States and Japan, have struggled to increase domestic chip production after the COVID-19 pandemic disrupted global supply chains.
TSMC is building a large chip plant in Kumamoto. Sony and auto parts maker Denso Corp will take minority stakes in the $8.6 billion project.
Sony plans to buy image sensor logic chips from the TSMC plant.
