Sony, TSMC agree to mass-produce next-gen image sensors in Kumamoto

2026-08-11

Joint venture established

Sony Group and Taiwan Semiconductor Manufacturing Co (TSMC) said on the 11th that they had formally agreed to jointly mass-produce next-generation image sensors. They will establish a joint venture with Sony holding about 60% and TSMC about 40%, and begin mass production at a semiconductor plant in Kumamoto Prefecture from 2029.

Investment to reach 1 trillion yen

The two companies had reached a basic agreement in May to collaborate on the development and production of next-generation sensors. The investment will be 465 billion yen from Sony Group and 282 billion yen from TSMC. Including government subsidies now being discussed with the Ministry of Economy, Trade and Industry, total investment is expected to reach around 1 trillion yen.

Targeting iPhone supply

The joint venture is expected to mainly supply high-performance camera sensors for Apple iPhones. It aims to improve performance by combining Sony Group's stacked sensor-element technology with TSMC's strength in mass production of advanced semiconductors. In the future, it also plans to look at applications in the 'physical AI' field, where artificial intelligence handles the control of robots and automobiles.

Competitive landscape and governor's comments

Sony Group holds more than half of the global market share for CMOS image sensors. As China-linked OmniVision and South Korea's Samsung Electronics pursue the market with massive investment, the aim is to improve investment efficiency by sharing capital spending with TSMC.

Kumamoto Governor Takashi Kimura said on the 11th about the two companies' announcement: 'It is very welcome. While Kumamoto Prefecture is still hurt by the earthquake two weeks ago, it is greatly appreciated to have a bright economic story looking ahead.'

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