Taipei [Taiwan], August 12 (ANI): Taiwan Semiconductor Manufacturing Co. (TSMC) and Sony Semiconductor Solutions Corp. have agreed to establish a joint venture to develop and manufacture next-generation image sensors. The two companies signed a definitive agreement to create Advanced Vision Semiconductor Manufacturing Corp. in Koshi City, Kumamoto Prefecture, Japan.
TSMC, the world's largest contract chipmaker, stated that the new firm will be a central hub for the development and manufacturing operations required for the commercial production of next-generation smartphone image sensors. Commercial production is scheduled to begin in 2029.
Sony Semiconductor Solutions will be the controlling shareholder, operating the joint venture as a subsidiary of Sony Group Corp. Sony Semiconductor Solutions will also appoint the representative director of Advanced Vision Semiconductor Manufacturing Corp.
Sony Semiconductor Solutions plans to contribute approximately 465 billion Japanese yen (USD 2.92 billion) through cash and asset transfers via a company split. TSMC plans to invest around 282 billion yen into the venture.
TSMC noted that capital contributions will be made in phases, depending on market demand and business conditions. The planned investment is contingent on the joint venture securing financial support from the Japanese government.
Under the arrangement, Sony Semiconductor Solutions will manage product design, planning, and the core development of image sensor technologies. TSMC will provide its advanced process technology and manufacturing expertise to support development and commercial production.
Both companies "intend to accelerate the commercialization of image sensor products driven by customer needs while advancing technological innovation and strengthening manufacturing capacity," according to TSMC.
The board of directors at TSMC approved the joint venture during a meeting that concluded on Tuesday. This agreement follows an initial nonbinding memorandum of understanding signed in May.
TSMC operates its first advanced semiconductor fabrication plant in Kumamoto, which began commercial production at the end of 2024. Construction on a second plant started last year, with mass production utilizing 3-nanometer technology scheduled to commence in 2028.
