Sony, TSMC to invest US$4.7bil in advanced image sensors

Sony Group and Taiwan's TSMC chip leader have agreed to jointly invest US$4.7 billion in the creation of advanced smartphone image sensors, with production set to commence in 2029. Kumamoto, Japan will host the joint venture in a remote area of Koshi City. Sony will contribute 465 billion yen (US$2.9 billion) while TSMC will contribute 282 billion yen (US$1.8 billion).

The facility will serve as a development and manufacturing hub for image sensors used in smartphones. Established at a fabrication plant within Sony's semiconductor subsidiary, the venture aims to leverage TSMC's advanced process technology and manufacturing expertise, while Sony assumes the lead in developing image sensor technologies and product design.

Sony currently dominates the global image sensor market, holding over 50 percent of the value. The expansion of image sensors to applications such as robots and AI-driven machines is anticipated to increase in the coming years. TSMC has already made significant investments in Japan, announcing plans in February to produce 3-nanometer semiconductors at a Kumamoto factory - a move aimed at bolstering chip supply resilience for Japan and globally.