Sony and TSMC plan $6.4 billion image sensor factory in Japan

Sony and TSMC plan $6.4 billion image sensor factory in Japan

Mon, August 10, 2026 at 3:09 PM GMT+3 2 min read

• SONY +1.56%
• TSM +0.44%

Sony Group and Taiwan Semiconductor Manufacturing Co. are in talks to invest a combined ¥1 trillion ($6.4 billion) in a joint image sensor factory in Japan, targeting the start of production in 2029, according to Bloomberg.

The new facility will be located inside Sony's current image sensor campus in Kumamoto Prefecture, in the south of Japan, according to Reuters. Sony's chip unit, Sony Semiconductor Solutions, will hold a controlling stake in the venture — approximately 60% — with TSMC owning the remaining 40%. No time frame was given for when the investment would be deployed.

The two companies are targeting demand from the automotive and robotics sectors, where next-generation sensors are expected to play a central role, according to Bloomberg. Japan's government will consider providing financial support to the venture, Trade Minister Ryosei Akazawa said.

On Monday, Sony's share price climbed by up to 2.2% and TSMC's by up to 1.7%.

"This is a virtually risk-free investment for Sony and TSMC," Toyo Research Advice analyst Hideki Yasuda said. The arrangement eases the capital demands on Sony in a sector where large manufacturing investments are unavoidable, while giving TSMC a dependable source of income, Yasuda said.

Sony and TSMC signed a memorandum of understanding in May to form the joint venture, with Sony chief executive Hiroki Totoki describing it as the company's "first step to becoming fab-light." Until that point, Sony had handled research, development, and manufacturing in-house. The two companies have a prior joint venture relationship: their earlier collaboration, Japan Advanced Semiconductor Manufacturing, dates to 2021 and is controlled by TSMC, with that entity's first Japanese fabrication plant reaching full-scale output by the end of 2024.

The new venture fits within Sony's wider effort to reduce its exposure to capital-heavy chip production and redirect resources toward higher-margin IP holdings such as music catalogs, film libraries, and gaming franchises. Sony counts Apple, Huawei Technologies, and Samsung Electronics among the major customers for its image sensors, and the company has been pushing to grow that business into the automotive and robotics markets.

A definitive binding agreement has not yet been signed, and the investment figures remain under discussion.