Sony, TSMC Form CMOS Image Sensor JV

Sony will design the image sensors. The venture will use TSMC’s process

By Mark LaPedus

Sony and TSMC have signed a definitive agreement for the establishment of a joint CMOS image sensor venture in Japan.

The venture, called Advanced Vision Semiconductor Manufacturing Corp., will serve as a core hub for the development and manufacturing activities required for the volume production of CMOS image sensors for smartphones. CMOS image sensors are semiconductor devices, which provide the camera functions in smartphones and other products.

The manufacturing activities in the joint venture will take place in Sony’s newly constructed fab in Koshi City, Kumamoto Prefecture, Japan. The joint venture is expected to commence volume production in 2029.

Pursuant to the definitive agreement, Japan’s Sony plans to contribute approximately 465 billion yen (US$2.92 billion) to the joint venture through a combination of cash contributions and the transfer of its assets. Taiwan’s TSMC, the world’s largest foundry vendor, plans to make cash contributions of approximately 282 billion yen (US$1.77 billion). In addition to these capital contributions, investments required to realize the production capacity planned by the venture are being considered on the premise that they would receive support from the Japanese government.

Sony will be the sole controlling shareholder in the joint venture. The venture is planned to operate as a consolidated subsidiary of the Sony Group. The representative director of the venture is planned to be appointed by Sony.

Sony intends to take a leading role in the development of core image sensor technologies, as well as product planning and design. The venture plans to leverage TSMC’s process technology.

This deal has been in the works for some time. In May, Sony and TSMC signed a non-binding memorandum of understanding to form a strategic partnership for the development and manufacturing of next-generation CMOS image sensors. This week’s announcement was the execution of a legally binding definitive agreement.

CIS market dynamics

Nonetheless, the CMOS image sensor market is a big business. Sony, OmniVision, Samsung and many others sell CMOS image sensors for a wide range of applications.

Basically, CMOS image sensors are tiny and complex semiconductor devices, which are incorporated into smartphones, cars, medical products and other systems. These devices are used to convert light into digital signals. In effect, these devices enable the camera functions in smartphones, automotive cameras, medical devices and industrial cameras.

In total, CMOS image sensor (CIS) revenues are projected to grow from $23.2 billion in 2024 to $30.1 billion in 2030, according to the Yole Group, a research firm. “Mobile remains the leading driver, but automotive and security applications are gaining strategic relevance,” according to Yole.

Sony is the world’s largest supplier of CMOS image sensors in the market. The company accounted for around 50% of global CMOS image sensor revenues in 2025, according to Yole Group.

“Samsung remains the second-largest CIS supplier, but its revenue is broadly stagnant, reflecting stronger competition from Sony in premium smartphones and from Chinese suppliers in mid- and low-end segments,” according to the Yole Group.

Several China-based CIS suppliers, including Omnivision, SmartSens, GalaxyCore, and Gpixel, are gaining share in the market. “China’s rise is not only market-driven but also supply-chain-driven. Indeed, Chinese CIS suppliers increasingly combine domestic foundry access, international manufacturing routes, and stronger links with local camera module players to improve cost, qualification, and time-to-market,” said Anas Chalak, an analyst at Yole.