Sony and TSMC will invest a combined $4.69 billion in the new Japan joint venture.
Sony will be the controlling shareholder and contribute its newly built chip factory in Kumamoto.
The venture plans to begin volume production of next-generation image sensors in 2029.
Sony Group and Taiwan Semiconductor Manufacturing Company (TSMC) will form a $4.69-billion joint venture (JV) to develop and manufacture next-generation image sensors in southern Japan, according to a Reuters report. The venture, Advanced Vision Semiconductor Manufacturing Corp, will be based in Kumamoto, where TSMC already operates its Japan Advanced Semiconductor Manufacturing (JASM) chip plant.
Volume production is expected to begin in 2029, with the companies planning to use advanced manufacturing technology to produce image sensors for smartphones.
1 August 2026
Get the latest issue of Outlook Business
The JV is expected to become a key hub for the development and production of the components.The companies are also considering additional funding needed to reach the planned production capacity. This is being considered on the assumption that the Japanese government will provide support.
Sony To Control New Japan Venture
Sony will be the controlling shareholder and invest 465 billion yen ($2.92 billion) in the venture through a combination of cash and asset transfers. This will include its newly constructed chip factory in Kumamoto.
TSMC will invest 282 billion yen in the joint venture. The capital contributions from both companies will be made in phases, depending on market demand and other business conditions, they said in a joint statement.
Advertisement
The companies are also considering additional funding needed to reach the planned production capacity. This is being considered on the assumption that the Japanese government will provide support.
TSMC Brings Manufacturing Expertise
Under the planned structure, Sony will lead the development of core image sensor technologies, along with product planning and design. TSMC will contribute its advanced semiconductor process technology and manufacturing expertise.
Image sensors are key components in smartphone cameras and convert light into electrical signals that can be processed to create digital images. The new venture will focus on next-generation sensors using advanced manufacturing technology.
Advertisement
The partnership also builds on the companies’ existing presence in Kumamoto. TSMC operates its JASM facility in the region, while Sony is contributing a newly built factory to the venture.
