Per Nikkei Asia reports, Sony Group and Taiwan Semiconductor Manufacturing Company (TSMC) plan to kick off mass production of next‑generation image sensor semiconductors in Kumamoto Prefecture in southwestern Japan as early as 2029.
Production operations will be run by a joint venture with Sony holding roughly 60% equity and TSMC around 40%. Total project investment is projected at approximately JPY 1 trillion (equivalent to about RMB 42.738 billion under current exchange rates).
Sony and TSMC reached a basic agreement on R&D and manufacturing collaboration for next‑generation image sensors this May, while specific partnership terms remained under follow‑up negotiation at that time.
The two parties are expected to finalize the mass production investment plan shortly and establish the joint venture before the close of fiscal 2026 ending March 2027.
The JV is set to supply high‑performance camera sensors for Apple iPhones. Looking ahead, both firms aim to boost sensor performance to enable more precise object recognition for AI systems and break into the emerging Physical AI sector, where AI controls tangible hardware such as robots and vehicles.
The joint venture will build large‑scale R&D facilities and production lines inside an existing image sensor plant operated by Sony Semiconductor Solutions in Kikuyo Town, Kumamoto Prefecture. Sony and TSMC are also negotiating potential government subsidies with Japan’s Ministry of Economy, Trade and Industry.
The planned JPY 1 trillion investment equals around four years of capital expenditure for Sony Group’s semiconductor division and stands close to the USD 8.6 billion total investment for TSMC’s first Kumamoto fab (roughly RMB 58.07 billion at present exchange rates).
The Kikuyo plant sits roughly 30 kilometers from the epicenter of the 2024 Kumamoto Earthquake yet sustained no major damage.
Kumamoto boasts abundant water resources indispensable for semiconductor manufacturing, alongside easy access to low‑cost power generated from renewable sources including geothermal and solar energy. Both Sony and TSMC have previously pledged to expand local semiconductor investment in Kumamoto over the medium to long term.
Sony currently holds over half of the global CMOS image sensor market share. Rivals such as China’s OmniVision and South Korea’s Samsung Electronics are ramping up investments to narrow the gap. Partnering with TSMC, the global leader in advanced semiconductor fabrication, will help Sony consolidate its technological edge in image sensors.
Sony is expected to withhold select proprietary core manufacturing techniques underpinning its sensor competitiveness from TSMC. For TSMC, deeper cooperation with the market leader will help accumulate targeted technical know‑how and strengthen its capabilities in the burgeoning Physical AI landscape.
(Reprinted from https://news.eccn.com/）