Sony Semiconductor Solutions Corporation and Taiwan Semiconductor Manufacturing Company (TSMC) have signed a definitive agreement to establish a joint venture in Japan focused on the development and production of advanced image sensors for smartphones.
The companies announced the agreement on August 11, 2026, saying the new entity, Advanced Vision Semiconductor Manufacturing Corporation, will be based in Koshi City, Kumamoto Prefecture. The venture is expected to begin volume production in 2029, subject to regulatory approvals and other closing conditions.
Sony will remain the controlling shareholder, with the joint venture planned as a consolidated subsidiary of Sony Group Corporation. The company also intends to appoint the venture’s representative director.
Under the agreement, Sony plans to contribute about 465 billion yen through a combination of cash and assets transferred through a company split. TSMC is expected to contribute approximately 282 billion yen in cash. The investments will be made in stages, depending on market demand and other business conditions.
Additional investment needed to achieve the planned production capacity is being considered with the expectation of support from the Japanese government, according to the companies.
Sony is set to lead development of core image sensor technologies, along with product planning and design. TSMC will contribute its advanced semiconductor manufacturing processes and production expertise to support the development and eventual volume manufacturing of the sensors.
The partnership builds on a preliminary agreement announced by the two companies on May 8, 2026. The latest agreement formalizes their plans to establish a dedicated manufacturing base for next-generation smartphone image sensors.
The joint venture is intended to combine Sony’s image sensor technology and product development capabilities with TSMC’s semiconductor manufacturing expertise. Both companies said the arrangement is aimed at supporting the commercialization of image sensor products and expanding manufacturing capacity.
Source : Sony Semiconductor Solutions and TSMC Agreed to Establish Joint Venture for Next-Generation Image Sensors
