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

Sony Semiconductor Solutions and Taiwan Semiconductor Manufacturing Co. have signed a legally binding agreement to create a joint venture, Advanced Vision Semiconductor Manufacturing Corp., that will begin mass producing next-generation image sensors in 2029. According to Mettis Global, the partners will commit a combined 747bn yen, or $4.7bn, to the venture. The venture will be based in Koshi, north of Kumamoto city in Japan.

Sony will hold a controlling 68% stake and consolidate the venture as its subsidiary, while TSMC takes the rest. A recently built Sony plant in Koshi is to be transferred to the new company, which will add production lines and development infrastructure. The venture is intended to serve as a central base for making smartphone image sensors on advanced process technology.

Kumamoto Prefecture, where TSMC already operates, was struck by a magnitude-7.1 earthquake in late July that reached the top level 7 on Japan's seismic intensity scale. Although the quake hurt the semiconductor industry, including Sony, the partners chose to proceed, expecting demand for artificial intelligence to grow. In May the pair had agreed to work together on next-generation sensors, and Sony said it aims to lead core technology, product planning and design.