Sony Semiconductor Solutions and Taiwan Semiconductor Manufacturing Company plan to form a joint venture to develop and manufacture next-generation image sensors, with a proposed investment of $6.3 billion, according to industry reports.
The parties have signed a non-binding memorandum of understanding. Sony Semiconductor Solutions would hold approximately 60 percent of the venture, with TSMC taking the remaining 40 percent. Mass production could begin as early as 2029.
The venture would operate from Sony Semiconductor Solutions' new fabrication plant in Koshi City, Kumamoto Prefecture, Japan.
The partnership pairs Sony Semiconductor Solutions' image sensor design expertise with TSMC's process technology, targeting high-performance sensors for artificial intelligence, automotive and robotics applications.
Kevin Zhang, TSMC senior vice president and deputy co-chief operating officer, said the partnership reflects a shared commitment to delivering advanced sensing technology and creating value for stakeholders.
Shinji Sashida, Sony Semiconductor Solutions president and CEO, said the joint venture brings together the strengths of both companies to drive advancement in next-generation image sensors.
The Kumamoto facility is intended to strengthen the local supply chain and support stable output for global and domestic demand.
Discussions are ongoing regarding additional investments by the venture. Sony is also considering further capital investment at its existing Nagasaki plant, with spending phased in response to market demand.
Japanese government support is a factor in those investment decisions. Formal incorporation of the venture depends on execution of a definitive agreement and satisfaction of standard closing conditions.
