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Sony and TSMC form a ¥747bn joint venture in Kumamoto to mass-produce next‑gen image sensors by 2029, combining design and foundry strengths for AI and mobile use.
Sony Semiconductor Solutions and TSMC will jointly invest ¥747 billion to mass-produce next-generation image sensors, aiming to begin volume output in 2029. The two firms will form a new company, Advanced Vision Semiconductor Manufacturing Corp., headquartered in Koshi, near Kumamoto city.
The joint venture will combine Sony’s sensor design leadership with TSMC’s large-scale manufacturing capabilities to develop sensors for smartphones and AI-driven applications. A recently completed Sony plant in Koshi will be transferred into the new company and upgraded with production lines and a development ecosystem.
Sony will hold a 68% controlling stake and consolidate the venture as a subsidiary, while TSMC will own the remaining share and contribute its foundry expertise. The partners say the collaboration moves research and production closer together, shortening the route from concept to commercial volumes.
Kumamoto was hit by a severe magnitude-7.1 earthquake in late July that caused major disruption to local chip facilities, including some operations tied to the partners. Despite that setback, both companies decided the long-term market opportunity for advanced imaging — driven by AI and mobile demand — justifies the sizable investment.
The venture is intended to serve as a central hub for both development and high-volume manufacturing of advanced image sensors, prioritizing technologies that scale efficiently. Executives say the facility will focus on production processes designed for high yield and reliability to meet global customer needs.
Industry observers welcomed the move for tightening integration between design and fabrication but noted that successfully ramping new capacity will require rigorous safety measures and supply-chain coordination after recent seismic shocks. The partners expect the initiative to strengthen Sony’s position in the image-sensor market while giving TSMC a foothold in a higher-value segment of the imaging supply chain.
Mass production is targeted for 2029, positioning the joint venture to address accelerating demand for sensors used in smartphones, automotive systems and AI-enabled devices. The companies say they will continue cooperating on technology development and product planning to ensure the new plant meets evolving market requirements
