Sony and TSMC have executed a legally binding definitive agreement to establish a joint venture, Advanced Vision Semiconductor Manufacturing Corporation.
Located in Koshi City, Kumamoto Prefecture, Japan, the joint venture (JV) is designed to serve as a core hub for the development and manufacturing activities necessary for the volume production of smartphone image sensors utilizing advanced manufacturing process technology. According to the companies, volume production is projected to commence in 2029.
Corporate Structure and Leadership
Under the terms of the agreement, Sony will serve as the sole controlling shareholder, with the JV operating as a consolidated subsidiary of Sony Group Corporation. Sony will also appoint the JV’s Representative Director.
Capital Contributions and Government Support
The financial structure of the partnership involves staged capital contributions:
- Sony: Plans to contribute approximately 465 billion yen via a combination of cash and asset transfers executed through a company split.
- TSMC: Plans to make cash contributions totaling approximately 282 billion yen.
Both companies noted that these capital injections will occur in phases, aligned with market demand and evolving business conditions. Furthermore, additional investments needed to realize the planned production capacity are currently under consideration, contingent upon securing financial support from the Japanese government.
Division of Operational Responsibilities
The strategic partnership leverages the distinct technical capabilities of both entities:
- Sony will lead core image sensor technology development, product planning, and product design.
- TSMC will provide advanced process technology and manufacturing expertise to support volume production capabilities.
The collaboration aims to accelerate the commercialization of customer-driven image sensor products, drive technological innovation, and expand regional manufacturing capacity.
Closing Conditions
The formal establishment of the JV and final completion of the transaction remain subject to standard regulatory approvals and customary closing conditions. All other terms of the partnership remain unchanged from the preliminary agreement announced on May 8, 2026.