TSMC, Sony Form Image Sensor Joint Venture
The companies plan to set up development and production lines in Japan
By Mark LaPedus
Sony Semiconductor and TSMC have signed a non-binding memorandum of understanding (MOU) to form a strategic partnership for the development and manufacturing of next-generation CMOS image sensors.
Under the proposed partnership, Japan’s Sony and Taiwan’s TSMC intend to establish a joint venture, with Sony being the majority and controlling shareholder. The two companies plan to set up development and production lines in Sony’s newly constructed fab in Koshi City, Kumamoto Prefecture, in Japan.
Through the joint venture, both companies expect to leverage Sony’s expertise in sensor design alongside TSMC’s strengths in process technology and manufacturing.
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 and other systems. These devices are used to convert light into digital signals, enabling imaging in smartphones, automotive cameras, medical devices and industrial cameras.
Apple has been incorporating Sony’s CMOS image sensors within its iPhones for many years. For example, “Apple has introduced a 48MP high-resolution Sony CMOS image sensor (CIS) in the new telephoto lenses of iPhone 17 Pro and iPhone 17 Pro Max smartphones. The sensor features a pixel size of 0.7µm and a sensor size of 1/2.55," according to TechInsights.
“Apple has also upgraded the selfie camera resolution across the iPhone 17 series to 24MP with a wider field of view, a notable jump from the 12MP resolution used in the recent generations. The sensor is 24MP, but the camera outputs 18MP effective photos. This allows Apple to use the extra pixels for multi-aspect cropping and Center Stage framing, while keeping consistent image quality. Apple is using the new 24MP custom Sony sensor and replacing Sony's previous generation IMX714,” according to the research firm.
More Sony-TSMC JV deals
Meanwhile, with the MOU signed, Sony and TSMC are discussing potential investments by the joint venture. These investments, along with new capital investment by Sony in its existing plant in Nagasaki, are being considered on the premise that they would be implemented in phases based on market demand, and that they would receive support from the Japanese government.
This partnership also seeks to explore and address emerging opportunities in physical AI applications, such as automotive and robotics.
The establishment of the joint venture remains subject to the execution of a definitive legally binding agreement regarding the partnership and the satisfaction of customary closing conditions.
TSMC expands in Japan
Meanwhile, TSMC, the world’s largest foundry vendor, continues to expand its efforts in Japan. In 2024, TSMC moved into production in its first fab venture in Japan. The fab venture, called Japan Advanced Semiconductor Manufacturing (JASM), is located in the Kumamoto Prefecture. Denso, Sony and Toyota are minority shareholders in JASM.
JASM produces chips using 28nm/22nm and 16nm/12nm processes. JASM produces chips for automotive, industrial, consumer and computing applications.
TSMC is building a second fab in the same location in Japan. In that fab, TSMC plans to manufacture chips based on its 3nm process. Volume production is slated for 2028.