TSMC, Sony Semiconductor Solutions plan image sensor JV in Kumamoto

Taipei, May 9 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) and Sony Semiconductor Solutions Corp. have announced plans to set up a joint venture in Kumamoto, Japan to develop image sensors.

In a statement released on Friday, the world's largest contract chipmaker said it has signed a non-binding memorandum of understanding (MOU) with Sony to establish a strategic partnership to develop and roll out next-generation image sensors.

TSMC said the planned joint venture in which Sony would hold a majority controlling stake is expected to build development and production lines in the Japanese partner's newly constructed fab in Koshi City, Kumamoto.

The cooperation is expected to leverage Sony's expertise in sensor design and TSMC's strength in process technology and manufacturing capability to enhance sensor performance, the chipmaker said.

TSMC said it was in discussions with Sony about potential investments by the joint venture, adding that the investments along with new capital spending by Sony in its existing plant in Nagasaki will be carried out in phases based on market demand and are expected to receive support from the Japanese government.

The cooperation with Sony is expected to explore business opportunities such as automotive and robotics applications, TSMC said.

It said the establishment of the joint venture is subject to the signing of a definitive binding agreement and the fulfillment of customary closing conditions.

"Sony has been our long-time partner in the CMOS (complementary metal-oxide-semiconductor) image sensor business," TSMC Senior Vice President and Deputy Co-COO Kevin Zhang (張曉強) said in the statement.

"We are excited to elevate our collaboration to the next level, which represents a key step forward in driving future sensing technology in the AI era," Zhang said.

For his part, Sony Semiconductor Solutions President and CEO Shinji Sashida said in the statement that he was delighted by the joint venture plan as the cooperation is the beginning of efforts to pair up the two companies' strengths.

The joint venture "aims to drive further advancement in technology and business within the next-generation image sensor field," Sashida said.

Through another joint venture with Japan Advanced Semiconductor Manufacturing Inc. (JASM), TSMC currently operates an advanced wafer fab in Kumamoto, with construction of the second fab underway.

Sony Semiconductor Solutions is one of the Japanese shareholders of JASM with TSMC taking a majority stake.