Key Takeaways
- Sony and TSMC plan to invest $6.3 billion in next-generation image sensors.
- Their 60-40 joint venture could begin production in Japan by 2029.
- The partnership will target automotive, robotics and physical AI applications.
Sony Group and Taiwan’s TSMC plan to invest about 1 trillion yen ($6.32 billion) to make next-generation image sensors in Japan, with production targeted for 2029.
Joint venture targets 2029 production
The joint venture will be about 60% owned by Sony and 40% by TSMC, according to the Nikkei business daily. Commercial production could begin as early as 2029 in Kumamoto prefecture in southern Japan.
The planned investment is larger than the companies’ previously disclosed details. In May, Sony and TSMC announced a nonbinding agreement to create a joint venture but said they were still discussing potential investments.
The venture is expected to use Sony’s newly constructed facility in Koshi City, Kumamoto prefecture, for development and production lines. Sony will remain the controlling shareholder under the proposed structure.
Sony declined to comment on the Nikkei report, while TSMC did not immediately respond to a Reuters request for comment.
Companies target automotive and robotics
The partnership focuses on next-generation image sensors, which help devices and machines capture and interpret visual information. Sony and TSMC have said they also plan to explore uses in automotive systems and robotics.
Sony Semiconductor Solutions President and CEO Shinji Sashida said in May that the venture would combine the companies’ strengths and advance technology in the next-generation image sensor field.
“Building on the trust cultivated through our long-standing collaboration with TSMC,” Sashida said, the companies had reached an agreement to take their partnership to a new stage.
TSMC Senior Vice President Kevin Zhang said the companies were seeking to expand their long-running cooperation in CMOS image sensors.
“We are excited to elevate our collaboration to the next level,” Zhang said, describing the agreement as a step toward future sensing technology in the AI era.
Partnership expands beyond smartphones
Sony is the world’s largest maker of image sensors, which are widely used in smartphones and vehicles. TSMC is one of the largest microchip companies in the world and the world’s largest contract chipmaker.
Sony has said the partnership could help it expand production capacity as demand for sensors grows beyond mobile devices. The company expects sensors to play a larger role in what it calls “physical AI,” including machines that interact with the real world.
Sony Group CEO Hiroki Totoki said in May that the partnership would strengthen the company’s access to advanced semiconductor process technology and allow greater production scalability.
“From the perspective of preparing for future demand, this JV is a significant step for us,” Totoki said during Sony’s earnings presentation.
The proposed venture remains subject to a definitive legally binding agreement and customary closing conditions, according to the companies’ May announcement and a Nikkei Asia report on the deal.
