Sony Group and Taiwan Semiconductor Manufacturing Co. (TSMC) plan to invest about 1 trillion yen, or roughly $6.3 billion, to create a joint venture in Japan’s Kumamoto Prefecture for mass production of next-generation semiconductors used in image sensors, according to Nikkei. The report said Sony is expected to hold about 60% of the venture and TSMC about 40%, with commercial mass production starting as early as 2029.
Existing Kumamoto site named for production base
Nikkei reported on Aug. 10 that the production base would be set up at an existing Sony Semiconductor Solutions site in Kumamoto rather than on a new site. The two companies are expected to complete the establishment of the joint venture during fiscal 2026, while the investment agreement could be finalized in the coming months.
Partnership follows May announcement
In May this year, Sony and TSMC announced that they would jointly develop and manufacture next-generation image sensors. Under that arrangement, Sony would contribute sensor design capabilities, while TSMC would provide manufacturing and process technology. Sony is already a minority shareholder in TSMC’s Kumamoto plant, so cooperation between the two companies in the region is not starting from scratch. Sony is also expected to be the controlling shareholder in the new joint venture.
Advanced process technology is central to the plan
The report said the performance bottleneck for image sensors has shifted from pixel design to the process node used for underlying logic circuits. That is an area where TSMC has a clear strength. Sony holds more than half of the global CMOS image sensor market, but competition has continued to build as Samsung Electronics and China’s OmniVision have kept increasing investment.
Automotive and robotics are key targets
The collaboration will also explore opportunities tied to Physical AI applications, including automotive and robotics. According to the report, the smartphone market alone would be difficult to rely on to justify a 1 trillion yen capacity buildout. Demand for high-performance sensors in autonomous driving and robotics is presented as the main reason the two companies are positioning for the period after 2029.