Sony Group, TSMC to Form $4.7 Billion Image-Sensor Joint Venture — Update

By Kosaku Narioka

Sony Group has agreed to form a joint venture with Taiwan Semiconductor Manufacturing Co. to produce next-generation image sensors for smartphones, with the companies planning to invest a combined $4.7 billion.

The Japanese electronics and entertainment company will contribute about 465 billion yen, equivalent to $2.92 billion, through a combination of cash and a transfer of assets, the companies said Tuesday.

TSMC plans to contribute about Y282 billion, bringing the total capital to Y747 billion, equivalent to $4.69 billion.

The companies are considering additional investment needed to achieve the venture's planned production capacity, on the assumption that they will receive support from the Japanese government, the companies said.

Mass production is expected to begin in 2029.

Under the strategic partnership, Sony is expected to take the lead in the development of core image-sensor technologies as well as in product planning and design.

The venture plans to draw on TSMC's manufacturing expertise to achieve mass production.

Sony will be the venture's sole controlling shareholder, and the company is expected to operate as a Sony subsidiary.

The joint venture will be based in Kumamoto prefecture, in southern Japan.

Capital contributions are expected to be made in phases, depending on market demand and other conditions.

Sony Group has been spending billions of dollars to beef up content for its entertainment businesses while laying the groundwork to capitalize on its image-sensing expertise in the era of artificial intelligence.

The joint venture with TSMC is aimed at limiting Sony's capital expenditure as the company prepares for greater demand for the "eyes" of machines in the age of AI.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

August 11, 2026 07:33 ET (11:33 GMT)