Japan Advanced Semiconductor Manufacturing (JASM), a joint venture formed by TSMC, Sony, DENSO Corporation, and Toyota, began construction of a new production base in Kumamoto Prefecture on Kyushu Island, Japan, in April 2022. The first fab (Fab 1) started mass production at the end of 2024. TSMC has initiated the construction of Fab 2, upgrading from the initially planned 6/7nm process to 3nm technology. Originally scheduled to begin operations in late 2027, it is now likely to be delayed until 2028.
According to TrendForce, the collaboration between Sony and TSMC in semiconductor production extends beyond the original fab plans. Rumors suggest that both parties are establishing a new joint factory to jointly develop and mass-produce next-generation image sensors, with total investment estimated at 1 trillion yen (approximately $6.276 billion / 42.339 billion yuan). The location is also selected in Kumamoto Prefecture. This scale of investment is equivalent to Sony's semiconductor business capital expenditure over four years and is close to that of TSMC's first fab in Japan.
Sony and TSMC reached a basic framework for cooperation as early as May, with specific details still under discussion. A final agreement is expected soon, and negotiations with Japan's Ministry of Economy, Trade and Industry regarding government subsidies will also take place. Sony and TSMC will hold 60% and 40% stakes respectively, aiming to establish the joint venture before the 2026 fiscal year (ending March 2027), with mass production expected in 2029. The new joint factory will produce next-generation high-performance image sensors for Apple iPhones and will later expand into fields such as "Physical AI," including emerging physical AI applications like robots and autonomous vehicles. In addition to production lines, corresponding R&D facilities will also be planned.
Although Sony currently holds more than half of the global CMOS image sensor market share, competitors are actively investing to narrow the gap. Sony hopes to strengthen its technological advantages through cooperation with TSMC and maintain its leadership position in an increasingly competitive environment.