Sony, Japan's global leader in image sensors, is forming a joint venture with Taiwan's TSMC. The two companies plan to use the joint venture as a starting point to expand cooperation across image sensor development and production.
Sony Group announced the partnership with TSMC in image sensor development and production during its fiscal 2025 (April 2025 to March 2026) earnings release the previous day, according to Japan's Nikkei and other local media on the 9th. Sony and TSMC plan to establish the joint venture to strengthen their competitiveness in next-generation image sensor technology. Under discussion is a structure in which Sony Semiconductor Solutions, a wholly owned subsidiary of Sony, would hold a majority stake in the joint venture. The two companies are reviewing plans to install development facilities and production lines in partnership with TSMC at Sony Semiconductor's image sensor plant in Koshi, Kumamoto Prefecture, Japan. They also agreed to discuss new investments, contingent on support from the Japanese government.
Sony Semiconductor is a leader in CMOS image sensors, which convert light into electrical signals in smartphone cameras and self-driving vehicles. Sony Semiconductor's share of the global CMOS image sensor market is known to be around 50 percent.
The Sony-TSMC alliance is seen as a move to widen the gap with Samsung Electronics (005930.KS) and maintain its top position. Sony Semiconductor's image sensors have been adopted in Apple's iPhones, helping it sustain a high market share. But Apple recently announced plans to use Samsung image sensors, shaking Sony Semiconductor's standing.
Hiroki Totoki, president of Sony Group, said of the TSMC partnership during the earnings briefing, "We aim to establish a foundation for future technological innovation and new technology development, and will solidify our world-leading position in the sensor field together with TSMC."
Meanwhile, Sony projected that its operating profit for fiscal 2026 (April 2026 to March 2027) will rise 11 percent from the previous year to 1.6 trillion yen (about 15 trillion won), while revenue will fall 1 percent to 12.3 trillion yen (about 144 trillion won).
