Key facts
- TSMC and Sony Group are forming a $4.69 billion joint venture for next-generation image sensors.
- The joint venture, Advanced Vision Semiconductor Manufacturing Corp, will be located in Kumamoto, Japan.
- Sony will be the majority shareholder with a 465 billion yen ($2.92 billion) investment, while TSMC will invest 282 billion yen.
- Volume production is anticipated to commence in 2029.
- The venture will utilize advanced manufacturing technology for image sensors, potentially for smartphones and AI applications.
- The companies are assuming Japanese government support for the necessary funding.
Taiwanese chipmaker TSMC and Japan's Sony Group are establishing a $4.69 billion joint venture, Advanced Vision Semiconductor Manufacturing Corp, to develop and produce next-generation image sensors in Kumamoto, Japan. Sony will be the majority shareholder, investing 465 billion yen ($2.92 billion), while TSMC will contribute 282 billion yen. Volume production is slated to begin in 2029, with the venture focusing on advanced manufacturing technology for sensors used in smartphones and potentially for physical AI applications like automotive and robotics.
The partnership aims to leverage Sony's expertise in sensor design with TSMC's advanced process technology and manufacturing capabilities. Both companies are proceeding with the assumption of receiving support from the Japanese government for the necessary funding. This move is seen as a significant initiative to drive further advancements in the next-generation image sensor field and maintain market leadership, particularly for Sony, which holds a dominant share in the global CMOS image sensor market. The joint venture is also expected to supply high-performance camera sensors for Apple's iPhone.
TSMC is already expanding its presence in Japan with its Japan Advanced Semiconductor Manufacturing (JASM) plant, which produces chips for automotive, industrial, consumer, and computing applications. TSMC is also building a second fab in Japan to manufacture chips based on its 3nm process, with volume production expected in 2028. This new image sensor venture represents a further deepening of TSMC's commitment to the Japanese market.