Sony, TSMC plan $4.7bn image sensor investment

Sony Group and Taiwan Semiconductor Manufacturing Company plan to invest a combined $4.7 billion to make advanced smartphone image sensors in southwestern Japan, the companies said on Tuesday.

Sony is set to invest 465 billion yen, or $2.9 billion, and TSMC 282 billion yen, or $1.8 billion, in a joint venture in Koshi City in Kumamoto region. Production is scheduled to start in 2029.

The companies said the venture will be created at a fabrication plant belonging to Sony's semiconductor business subsidiary and will serve as a development and manufacturing hub for smartphone image sensors.

They said the collaboration is intended to use TSMC's advanced process technology and manufacturing expertise, while Sony will lead image sensor technology development and product design.

Sony accounts for more than 50 percent of the global image sensor market by value. TSMC has also announced other investments in Kumamoto, including plans to produce three-nanometre semiconductors at a factory in the region.