Sony, TSMC to jointly mass produce next-gen image sensors from 2029

August 12, 2026 (MLN): Sony Semiconductor Solutions Corp. and Taiwan Semiconductor Manufacturing Co. (TSMC) will begin mass production of next-generation image sensors in 2029, with the two companies committing a combined 747bn yen ($4.7bn) to the venture.

Sony's semiconductor unit and TSMC have signed a legally binding definitive agreement to establish a joint venture named Advanced Vision Semiconductor Manufacturing Corp., to be based in Koshi, just north of Kumamoto city, APP reported.

The production base of the Sony Group Corp. subsidiary and the world's largest contract chipmaker will be set up in Kumamoto Prefecture, which suffered a magnitude-7.1 earthquake in late July registering the maximum 7 on Japan's seismic intensity scale where TSMC already operates.

The quake dealt a heavy blow to the semiconductor industry, including Sony, but the two firms decided on the large investment in anticipation of growing demand for artificial intelligence.

The joint venture will serve as a core hub for development and manufacturing work required for volume production of image sensors for smartphones, using advanced manufacturing process technology.

Sony will hold a controlling 68% stake, with the venture operating as its consolidated subsidiary, while TSMC will own the remaining stake.

A newly built Sony plant in Koshi will be transferred to the joint venture, which will then set up production lines and a development environment.

In May, the two companies had agreed to cooperate on the development and manufacture of next-generation image sensors.

Sony is the world's top image sensor maker by value.

Sony said that under the strategic partnership, it intends to take a leading role in developing core image sensor technologies, as well as in product planning and design.

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