Sony Group and Taiwan Semiconductor Manufacturing Co. (TSMC) are forming a joint venture to develop and produce next-generation image sensors, according to plans announced in May.
The venture aims to manufacture sensors for use in automobiles, robots, and smartphones. Sony, which is the world's largest maker of image sensors, is expected to hold a 60% stake in the venture, while TSMC, the world's largest contract chipmaker, is expected to hold 40%.
The joint venture will be based in Kumamoto, Kumamoto Prefecture, Japan. The companies have collaborated for five years through the Japan Advanced Semiconductor Manufacturing (JASM) company.
Investment and funding
Estimates for the total investment in the joint venture vary, with some sources citing approximately $6.3 billion (¥1 trillion) and others providing figures ranging from $4.7 billion to $6.3 billion.
Reported investment for the new plant.
In terms of specific contributions, Sony Group is reported to be investing 465 billion yen ($2.92 billion), while TSMC is reported to be investing 282 billion yen. The companies are considering additional funding, assuming support from the Japanese government is made available. The Tokyo government previously announced it would provide up to 60 billion yen in support for Sony's image sensor factory in Kumamoto.
Timeline and market response
Mass production of the image sensors is expected to begin in 2029. The companies are expected to finalize the investment agreement in the coming months.
