[News] TSMC, Sony Reportedly Plan JPY 1 Trillion JV for Image Sensors in Kumamoto, Eye 2029 Mass Production

TSMC continues to expand its global manufacturing footprint as its partnerships with major international players deepen. According to Nikkei, sources say Sony Group and TSMC plan to begin mass production of next-generation image sensor chips in Kumamoto Prefecture, southwestern Japan, as early as 2029.

Production is expected to be handled by a joint venture owned roughly 60% by Sony and 40% by TSMC, with total investment reaching around JPY 1 trillion (US$6.3 billion), the report indicates. The planned investment would be equivalent to roughly four years of capital spending by Sony Group’s semiconductor business and approach the US$8.6 billion invested in TSMC’s first Kumamoto fab.

The joint venture is expected to supply high-performance camera sensors for Apple’s iPhone, the report notes. Longer term, Sony and TSMC aim to improve sensor performance for more precise AI object recognition, targeting emerging physical AI applications such as robots and vehicles. The venture also plans to establish large-scale R&D facilities and production lines at Sony Semiconductor Solutions’ image sensor plant in Koshi, Kumamoto.

The partnership has already begun to take shape. Sony and TSMC reached a basic agreement in May to jointly develop and produce next-generation image sensors, while specific details remained under discussion. According to Nikkei, the companies are expected to finalize an agreement on mass production investment soon and establish the joint venture by the end of fiscal 2026, which runs through March 2027.

Sony Deepens TSMC Ties in Fab-Lite Push

The partnership could also help Sony defend its lead in the increasingly competitive image sensor market. Nikkei notes that Sony controls more than half of the global CMOS image sensor market, while rivals including China’s OmniVision and South Korea’s Samsung Electronics are investing aggressively to close the gap. By partnering with TSMC, Sony aims to further strengthen its technological edge.

Behind the shift in Sony’s manufacturing strategy is a changing business environment. According to Nikkei, nearly 70% of Sony Group’s sales now come from entertainment businesses such as gaming, music, and movies. Former Sony Semiconductor Solutions President Terushi Shimizu has said that the joint venture with TSMC is only the first step in pursuing a fab-lite strategy.

Notably, Investor.com indicates that the new venture would differ from TSMC-led JASM, which primarily produces logic chips, as it would be controlled by Sony and focus on next-generation image sensors. Sources cited by Investor.com say the partnership could help Sony expand into autonomous vehicles, industrial robots, and physical AI, while broadening TSMC’s manufacturing footprint in Japan. The project, however, still requires formal agreements, government approvals, and confirmation of subsidy terms.

Read more

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(Photo credit: Sony)