Sony Group and Taiwan Semiconductor Manufacturing Company (TSMC) have signed a binding agreement to establish a $4.69 billion joint venture named Advanced Vision Semiconductor Manufacturing Corp. The new entity, based in Koshi City, Kumamoto Prefecture, Japan, will develop and manufacture next-generation image sensors primarily for smartphones, with additional potential in AI, automotive, and mobile markets.
Under the deal, Sony Semiconductor Solutions will invest approximately 465 billion yen ($2.92 billion) through a combination of cash and asset transfers, securing a controlling stake and running the venture as a subsidiary. TSMC will contribute around 282 billion yen ($1.77 billion). Total capital stands at 747 billion yen. Sony will lead core sensor technology development, product planning, and design, while TSMC provides advanced process technology and manufacturing expertise.
Mass production is slated to begin in 2029, with capital contributions phased according to market demand and business conditions. The companies are also seeking Japanese government support to reach full planned capacity. The venture leverages TSMC’s existing footprint in Kumamoto, where its JASM fab is already operational, and integrates new capacity into an existing Sony image sensor plant.
The formal agreement follows a non-binding memorandum of understanding announced in May. Sony aims to scale its image sensing business amid growing demand from AI applications, while limiting its standalone capital expenditure.
