Taiwan Semiconductor and Sony finalize a $4.7 billion joint venture agreement to mass produce the next generation of image sensors by 2029
Taiwan Semiconductor and Sony signed a joint venture agreement worth $4.69 billion to establish the "Advanced Visual Semiconductor Manufacturing Company" in Kumamoto, Japan, focusing on the research and production of next-generation smartphone image sensors, with the goal of mass production by 2029. Sony will hold the majority and lead the technology development, while Taiwan Semiconductor will provide advanced process support. The funding from both parties will be phased in, and they are seeking support from the Japanese government to expand production capacity
According to Zhitong Finance APP, on Tuesday, Taiwan Semiconductor (TSM.US) and Sony Group (SONY.US) officially announced that they have signed a legally binding final agreement to jointly invest approximately $4.69 billion to establish a joint venture called Advanced Vision Semiconductor Manufacturing Corp in Kōshi City, Kumamoto Prefecture, Japan, focusing on the development and production of next-generation smartphone image sensors, with the goal of achieving mass production by 2029.
According to a joint statement released by both parties, Sony will be the controlling shareholder of the joint venture and will be included in Sony Group's consolidated financial statements. Sony plans to invest approximately 465 billion yen, part of which will be contributed in cash, while the other part will be transferred to the joint venture in the form of a company spin-off, including related assets such as its newly built wafer fab in Kumamoto Prefecture. Taiwan Semiconductor will contribute approximately 282 billion yen in cash. Both parties stated that these funds will be phased in according to market demand and other operational conditions.
In addition to the direct investments from Sony and Taiwan Semiconductor, both parties also indicated that discussions are underway to secure support from the Japanese government for additional investments needed to achieve the planned production capacity of the joint venture.
In terms of technical division of labor, Sony will lead the research and development of core image sensor technology, as well as product planning and design; Taiwan Semiconductor will provide its advanced process technology and manufacturing expertise to support production for the joint venture. The joint venture is positioned as the main mass production base for smartphone image sensors, utilizing advanced manufacturing processes to create next-generation products.
It is worth noting that the two companies first disclosed their intention to establish a joint venture back in May of this year. On Monday, reports indicated that both parties are discussing a total joint investment of approximately 1 trillion yen (about $6.4 billion) for the construction of a new image sensor factory
