According to a report from Nikkei on Monday, Sony Group of Japan and Taiwan Semiconductor Manufacturing Company (TSMC) plan to jointly invest approximately 1 trillion Japanese yen (around 6.32 billion US dollars) to start mass production of next-generation image sensors (CMOS) in Kumamoto Prefecture, Japan by as early as 2029.
The agreement for production investment is expected to be reached soon with the joint venture established by the end of the 2026 fiscal year (ending in March 2027). The joint venture will have Sony holding about 60% of the shares and TSMC holding about 40%.
The new factory will be located in Koshi City, Kumamoto Prefecture, within a facility operated by Sony Semiconductor, equipped with extensive research and development facilities and production lines. Additionally, negotiations are underway with the Japanese Ministry of Economy, Trade, and Industry for potential government subsidies.
This 1 trillion yen investment plan is equivalent to around four years of capital expenditure for Sony Group’s semiconductor business. Converting to US dollars, it is about 2.3 billion dollars less than the total investment of TSMC’s first Kumamoto wafer factory amounting to 8.6 billion dollars.
Nikkei speculates that the joint venture is expected to supply high-performance camera sensors to Apple’s iPhone. Moreover, they plan to enhance sensor performance to enable AI systems to more accurately identify objects, thus advancing into the emerging field of “Physical AI,” controlled by AI-driven robots and vehicles.
In fact, they announced a “preliminary agreement” back in May this year, stating that the collaboration aims to explore development opportunities in physical AI applications for automobiles, robots, and more.
Currently, Sony is the world’s largest CMOS image sensor manufacturer widely used in smartphones, automobiles, cameras, and various fields; while TSMC is the world’s largest semiconductor foundry.
However, Nikkei speculates that Sony may not disclose its “proprietary core manufacturing technology” for image sensors to TSMC. TSMC’s goal is to deepen its expertise in the field through close cooperation with the market leader.
Regarding the reports, Sony declined to comment, while TSMC only responded that apart from the announcement of the collaboration with Sony in May, there is no new information to provide at present.