TSM.US (TSM.US) and Sony (SONY.US) finalize a $4.7 billion joint venture agreement to mass-produce next-generation image sensors in 2029

Zhitong Finance App learned that on Tuesday, TSM.US (TSM.US) and Sony Group (SONY.US) officially announced that they have signed a final, legally binding agreement to jointly invest approximately US$4.69 billion to establish a joint venture “Advanced Vision Semiconductor Manufacturing Corp” (Advanced Vision Semiconductor Manufacturing Corp) in Koshi City, Kumamoto Prefecture, Japan to focus on the development and production of next-generation smartphone image sensors, with the goal of mass production in 2029.

According to the joint statement issued by the two parties, Sony will act as the controlling shareholder of the joint venture and be included in the scope of the Sony Group's consolidated statement. Sony plans to invest about 465 billion yen, some of which will be invested in cash, while the other part will be transferred to a joint venture, such as its newly built fab plant in Kumamoto Prefecture, through a company spin-off. TSMC will invest approximately 282 billion yen in cash. The two sides stated that these funds will be disbursed in stages according to market demand and other operating conditions.

In addition to direct investment from Sony and TSMC, the two sides also stated that discussions are under way on the premise of obtaining support from the Japanese government on the other investments required to achieve the production capacity planned by the joint venture.

In terms of technical division of labor, Sony will lead the research and development of core image sensor technology, while also responsible for product planning and product design; TSMC will export its advanced process technology and manufacturing process expertise to provide production support to the joint venture. The joint venture is positioned as a major mass production base for smartphone image sensors, using advanced manufacturing processes to create next-generation products.

Notably, the two companies first disclosed their intention to establish a joint venture as early as May of this year. Meanwhile, on Monday, it was reported that the two sides are discussing a total investment of about 1 trillion yen (about 6.4 billion US dollars) to build a new image sensor factory.