TSMC and Sony Team Up on Next-Gen Image Sensors, Target 2029 Production
TSMC and Sony are joining forces to build the next generation of image sensors, creating a new semiconductor joint venture in Japan as demand for advanced camera technology continues to rise.
The two companies have signed a definitive agreement to establish Advanced Vision Semiconductor Manufacturing Corp. in Koshi City, Kumamoto Prefecture, according to Focus Taiwan.
The venture is expected to become a hub for developing and manufacturing next-generation smartphone image sensors, with commercial production targeted for 2029.
Sony will control the venture
Sony Semiconductor Solutions will be the controlling shareholder and operate the joint venture as a subsidiary of Sony Group. It will also appoint the venture's representative director.
The Age of Anger
31 Jul 2026 - Vol 05 | Issue 31
A raging generation makes the government relent. What's next?
Sony plans to contribute around ¥465 billion ($2.92 billion) through cash and asset transfers, while TSMC will invest approximately ¥282 billion.
TSMC said its investment will be made in phases depending on market demand and business conditions, with the plan also assuming financial support from the Japanese government.
Two chip giants, different strengths
The partnership brings together two distinct capabilities.
Sony Semiconductor Solutions will oversee product design, planning and core image-sensor technology, while TSMC will bring its advanced-process technology and semiconductor manufacturing expertise.
The goal is to accelerate the commercialisation of image sensors based on customer demand while expanding manufacturing capacity and technological capabilities, TSMC said.
Why Kumamoto matters
The joint venture will add to TSMC's growing semiconductor footprint in Japan.
TSMC's first Kumamoto fab began commercial production in late 2024, while construction of a second plant began last year. The second facility is expected to begin mass production using advanced 3-nanometre technology in 2028.
The latest venture follows a non-binding memorandum of understanding signed by TSMC and Sony in May. Now the partnership has moved from a plan on paper to a legally binding agreement. And the target is clear: build the next generation of smartphone eyes in Japan, with Sony designing them and TSMC making them.
(With inputs from ANI)