Sony Semiconductor Solutions Corporation and Taiwan Semiconductor Manufacturing Company (TSMC) have entered into a definitive agreement to establish a joint venture focused on the development and manufacturing of next-generation image sensors for smartphones.

The new company, Advanced Vision Semiconductor Manufacturing Corporation, will be based in Koshi City, Kumamoto Prefecture, Japan. It is expected to serve as a central hub for the development and production activities required for high-volume manufacturing of advanced image sensors, with volume production scheduled to begin in 2029.

Under the agreement, Sony will remain the sole controlling shareholder of the venture, which will operate as a consolidated subsidiary of Sony Group Corporation. Sony is also expected to appoint the representative director of the company.

Significant Investments Back New Venture

To support the initiative, Sony plans to contribute approximately ¥465 billion through a combination of cash investments and asset transfers, including its newly constructed fabrication facility in Kumamoto Prefecture. Meanwhile, TSMC plans to invest approximately ¥282 billion (US$1.8 billion) in cash.

The companies stated that these investments will be phased according to market demand and broader business conditions. In addition, further investments needed to achieve planned manufacturing capacity are being considered with the expectation of support from the Japanese government.

Combining Strengths to Drive Innovation

The partnership brings together Sony’s expertise in image sensor technologies and TSMC’s advanced semiconductor manufacturing capabilities. Sony will take the lead in core image sensor technology development, product planning, and product design. At the same time, TSMC will contribute its advanced process technologies and manufacturing know-how to support development and production activities.

As a result, the companies aim to accelerate the commercialization of image sensor products aligned with evolving customer needs. They also intend to strengthen manufacturing capacity while advancing technological innovation in the highly competitive smartphone imaging market.

Building on Existing Strategic Cooperation

The latest agreement formalizes and advances the strategic partnership announced by the two companies in May 2026. All other aspects of that earlier collaboration remain unchanged.

The establishment of the joint venture and completion of the transaction remain subject to customary closing conditions and the receipt of required regulatory approvals.

12 August 2026