Sony Semiconductor Solutions and TSMC have signed a legally binding definitive agreement to establish a joint venture called Advanced Vision Semiconductor Manufacturing Corporation, based in Koshi City, Kumamoto Prefecture, Japan. The venture is intended to serve as a central hub for developing and manufacturing image sensors used in smartphones, built using advanced manufacturing process technology, with volume production expected to begin in 2029.
Sony will be the sole controlling shareholder in the joint venture, which is planned to operate as a consolidated subsidiary of Sony Group Corporation, and Sony will appoint the venture's representative director.
Under the agreement, Sony plans to contribute roughly 465 billion yen to the venture, combining cash contributions with the transfer of certain assets through a company split, a corporate restructuring method used to spin off part of a business into a separate entity. TSMC plans to contribute approximately 282 billion yen in cash. Both companies' capital contributions are expected to be made in phases, tied to market demand and other business conditions. Beyond these direct contributions, additional investment needed to reach the venture's planned production capacity is being considered on the assumption that it would receive support from the Japanese government.
Under the partnership, Sony intends to take the lead on developing core image sensor technology, along with product planning and design. The joint venture will draw on TSMC's advanced manufacturing process technology and expertise to support the development and manufacturing work needed for volume production. Through this collaboration, the two companies aim to speed up the commercialization of image sensor products based on customer needs, while continuing to advance the underlying technology and expand manufacturing capacity.
Establishing the joint venture and completing the transaction remain subject to receiving required regulatory approvals and satisfying other standard closing conditions. All other terms of the partnership remain consistent with what Sony and TSMC first announced on May 8, 2026, when the two companies entered a preliminary agreement for this next-generation image sensor collaboration.
