Sony to Team Up with TSMC on Image Sensors

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[Financial News] Sony Group Corporation (Sony), Japan's No. 1 company in the global image sensor market, is joining forces with Taiwan Semiconductor Manufacturing Company Limited (TSMC), the world's leading foundry, to strengthen its competitiveness in next-generation image sensors. The two companies plan to begin by establishing a joint venture and then expand cooperation in technology and production. Analysts say the move is a full-scale effort to counter challengers such as Samsung Electronics Co., Ltd. in the image sensor market.
According to Nihon Keizai Shimbun and other outlets on the 9th, Sony Group said in its earnings announcement for fiscal 2025, which runs from April 2025 to March 2026, that it would partner with TSMC on the development and production of image sensors.
Sony and TSMC aim to set up a joint venture that will lower development and production costs for image sensors while boosting technological competitiveness in next-generation sensors. The two sides are coordinating a plan for the venture to be majority-owned by Sony Semiconductor Solutions, a wholly owned subsidiary of Sony.
The companies are reportedly considering installing development equipment and production lines with TSMC inside the Sony Semiconductor Manufacturing Kumamoto Factory in Kōshi City, Kumamoto Prefecture, Japan. They are also said to be discussing new investment on the condition that the Japanese government provides support. Sony Semiconductor Solutions holds roughly 50% of the global CMOS image sensor market, which converts light into electrical signals for smartphone cameras and autonomous vehicles.
The cooperation comes as Apple Inc. recently announced plans to use Samsung image sensors. The global image sensor market is now rapidly shifting beyond simple smartphone components and into artificial intelligence, autonomous driving, security, and industrial vision. In particular, one of the industry's biggest questions is who will secure the automotive and AI vision markets first as smartphone growth slows. Samsung's advance in this market could pose a direct threat to Sony.
The Nikkei reported that Samsung Electronics Co., Ltd. may gain stronger bargaining power in talks with Apple and others as a memory chip maker whose products are in high demand for AI infrastructure.
At an earnings briefing, Sony Group President Hiroki Totoki said of the partnership with TSMC, "We will solidify our position as the world's leading company in sensors by working with TSMC to establish a foundation for future technological innovation and new advances in technology."
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soup@fnnews.com Im Su-bin Reporter