Sony, TSMC agree to cooperate on next-generation image sensor development

TOKYO — Sony Semiconductor Solutions Corp, a wholly owned subsidiary of Sony Group Corp, and Taiwan Semiconductor Manufacturing Co said Friday they have agreed to cooperate for the development and manufacturing of next-generation image sensors.

Sony and TSMC, the world's largest contract chip manufacturer, intend to establish a joint venture and set up development and production lines at Sony's newly built factory in the southwestern Japan city of Koshi in Kumamoto Prefecture, they said.

At one of the two factories the Taiwanese foundry already has in the prefecture, mass production of chips using 12- to 28-nanometer technology began in December 2024 for use in automobiles and image sensors for customers such as Sony Group and auto parts maker Denso. The other plant for more advanced chips is still under construction.

Through the joint venture, in which Sony will be the majority and controlling shareholder, the two firms are expected to leverage Sony's expertise in sensor design as well as TSMC's strengths in process technology and manufacturing capacity.

"This partnership underscores our shared commitment and mutual vision of leveraging cutting-edge technologies and innovative solutions to deliver leading sensing technology and products," said Kevin Zhang, TSMC senior vice president, in a statement.

Image sensors, widely used in smartphones and dashboard cameras, convert light into electrical signals to process images.

Sony, the global leader, is forecast to hold a 56 percent share of the global image sensor market by revenue in fiscal 2025.

The partnership also aims to explore emerging opportunities in physical artificial intelligence applications, such as automotive and robotics, they said.

Amid intensifying global competition to produce advanced chips and growing demand for them, the Ministry of Economy, Trade and Industry announced in April that it will provide up to 60 billion yen ($383 million) in subsidies for Sony's image sensor business to help mass-produce cutting-edge sensors.

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