TAIPEI (Taiwan News) — TSMC and Sony are deepening their cooperation on next-generation image sensors as competition from Samsung and Chinese chipmakers intensifies, Nikkei Asia reported Tuesday.
The companies signed a memorandum of understanding in May to establish a joint venture for developing and manufacturing next-generation image sensors in Kumamoto, Japan. Sony will be the majority shareholder, while TSMC will contribute its process technology and manufacturing expertise to complement Sony’s sensor-design capabilities.
The planned venture is expected to target applications including smartphones, vehicles, and robots, with commercial production potentially beginning as early as 2029. Reuters reported that the companies are considering a combined investment of about NT$203.59 billion (US$6.32 billion), with Sony holding 60% and TSMC 40%.
The partnership comes as image sensors face a changing demand outlook. Smartphones have traditionally been the industry’s biggest market, but Counterpoint Research forecasts global smartphone shipments will fall 13.9% in this year amid a memory shortage, while demand for sensors is expected to expand over the longer term as robots, vehicles, and other machines increasingly rely on visual perception.
TSMC also faces competition from Samsung Electronics in image sensors and foundry services, while Chinese companies are expanding their capabilities in image sensor manufacturing, per Nikkei Asia. SmartSens Technology and Nexchip, for example, have jointly developed a 180-megapixel image sensor.
The move is unusual for TSMC because the chipmaker generally serves a broad customer base rather than developing and manufacturing products in close partnership with a specific company. The alliance with Sony suggests both companies see next-generation image sensors and physical AI as strategic growth areas worth pursuing together, per Nikkei Asia.
