Sony Semiconductor, TSMC to invest 747 billion yen in next-gen sensors

Sony Semiconductor Solutions Corp. and Taiwan Semiconductor Manufacturing Co. have announced plans to invest a combined 747 billion yen in the production of next-generation image sensors in Kumamoto Prefecture. The investment comes as a response to the growing demand for artificial intelligence, despite the devastating impact of the magnitude-7.1 earthquake in late July on the semiconductor industry.

The Japanese firms signed a definitive agreement on Tuesday to establish a joint venture called Advanced Vision Semiconductor Manufacturing Corp. in Koshi, north of Kumamoto city. Sony will control the venture with a 68 percent stake, while TSMC will hold the remaining 32 percent. The new plant in Koshi will serve as the core hub for development and manufacturing of image sensors for smartphones, utilizing advanced manufacturing process technology.

TSMC will be responsible for setting up production lines and a development environment. Sony, the world's leading image sensor maker by value, will take the lead in developing core image sensor technologies, product planning, and product design. The joint venture may also explore a separate funding scheme to achieve its production capacity goals, potentially with government support.