Sony is teaming up with chip giant TSMC on a new joint venture in Japan to build the next generation of image sensors. The project will be based at Sony’s newly-built facility in Koshi City, with Sony leading the effort while leveraging TSMC’s strengths in process technology and manufacturing. Both companies are also seeking financial incentives from the Japanese government.
The move is part of CEO Hiroki Totoki’s plan to make Sony “fab-light” — reducing its in-house manufacturing footprint and focusing more on intellectual property. The strategy has already led Sony to exit TV manufacturing, handing control of its Bravia division to TCL.
Image sensors are becoming increasingly complex with the advent of stacking technology, which likely factored into Sony’s decision to bring in TSMC’s manufacturing expertise. Sony’s sensors currently supply a broad range of customers, including Apple, Google, and OnePlus for smartphones, as well as camera makers such as Nikon, Fujifilm, Leica, DJI, and Blackmagic.
One potential risk of the arrangement is that Sony’s existing customers could choose to work directly with TSMC for future sensor needs, bypassing Sony entirely. If the partnership succeeds, however, it could strengthen Sony’s position in image sensors for cameras, automotive applications, and other markets.
Source: Sony Partners with TSMC to Build Next-Gen Image Sensors in Japan