Sony, TSMC to invest $4.7 billion in image sensor joint venture

Sony Group and TSMC signed a binding agreement on Tuesday to build a $4.69 billion joint venture in Kumamoto, Japan, to make next-generation smartphone image sensors in a deal that helps to track where the world’s camera chips get built and how much Taiwan’s top chipmaker is betting on Japan.

The venture will be called Advanced Vision Semiconductor Manufacturing Corp., TSMC said in its statement, and it will be located in Koshi City, in Kumamoto Prefecture.

Sony takes charge of new venture

Sony’s semiconductor arm, Sony Semiconductor Solutions, will keep the controlling stake in the venture. The arm will run the business as a subsidiary of Sony Group, and a director will be appointed from Sony’s side of the venture.

The funding is also split unevenly, with Sony Semiconductor Solutions putting in about 465 billion yen, equal to approximately $2.92 billion in part cash and part assets moved over through a company split. TSMC’s investment share is said to be about 282 billion yen. Nippon.com, citing Jiji Press, put the combined figure at 747 billion yen, which comes to roughly $4.69 billion according to the 159.33 yen-per-dollar cited by Reuters.

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