Sony and TSMC form joint venture for image sensor production in Japan

Sony Semiconductor Solutions and TSMC have signed a definitive agreement to establish a joint venture, Advanced Vision Semiconductor Manufacturing, based in Koshi, Kumamoto Prefecture, Japan. The partnership aims to develop and manufacture next-generation image sensors for smartphones, with mass production targeted to begin in 2029.

Sony will be the sole controlling shareholder, investing approximately 465 billion yen, which includes the transfer of existing factory assets in Kumamoto. TSMC will contribute approximately 282 billion yen and provide advanced process technology and manufacturing expertise. The project is expected to receive support from the Japanese government to ensure domestic manufacturing capacity and supply chain security.

Industry analysts suggest the venture is a strategic move to compete with rivals like Samsung and OmniVision. Beyond smartphones, the collaboration is positioned to address growing demand in emerging sectors such as robotics, digital health, and security, driven by the rise of physical AI. The move also helps TSMC diversify its production capabilities outside of Taiwan, leveraging Japan’s skilled workforce.