Sony Partners with TSMC to Stay Ahead in Image Sensor Race Amid Samsung's Rapid Pursuit
TSMC's Strategic Move to Lead in Physical AI
Sony, the global leader in the image sensor market, has joined forces with Taiwan's TSMC. This move is seen as a strategic bid to maintain its overwhelming market dominance and fend off fierce competition from latecomers such as Samsung Electronics.
According to local media including Nikkei on May 9, Sony Group announced during its fiscal year 2025 (April 2025 to March 2026) earnings release the previous day that it will form a partnership with TSMC for the development and production of image sensors. Sony and TSMC plan to establish a joint venture to lower the development and production costs of image sensors, while also enhancing their technological competitiveness in next-generation sensor technologies.
The joint venture is currently being structured so that Sony Semiconductor Solutions, a wholly owned subsidiary of Sony, will hold a majority stake.
The companies are considering installing development facilities and production lines in collaboration with TSMC at Sony's semiconductor image sensor plant in Koshi City, Kumamoto Prefecture, Japan. Discussions on new investments will take place on the premise of support from the Japanese government.
Sony Semiconductor is a leading company in the CMOS image sensor sector, which converts light into electrical signals for use in smartphone cameras and autonomous vehicles, holding a global market share of around 50%.
Sony's image sensors have maintained a high market share as they are adopted in Apple iPhones, but Samsung Electronics, currently ranked second, is closing in fast. In particular, Sony's sense of crisis has grown recently after Apple announced plans to use Samsung's image sensors as well.
Nikkei reported, "Samsung Electronics, as a manufacturer of memory semiconductors with rising demand for AI infrastructure, could gain greater bargaining power in negotiations with companies like Apple."
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Hiroki Totoki, President of Sony Group, stated at the earnings briefing, "We aim to solidify our world-leading position in the sensor field with TSMC by establishing a foundation for future technological innovation and advancements."
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