Tsmc doesn't slow down. The Taiwanese semiconductor giant has posted another month of strong growth, with July revenues jumping 44,7% year-on-year, and is simultaneously preparing a new industrial offensive in Japan. The company is in talks with Sony to invest a total of approximately 1.000 billion yen, equivalent to 6,3-6,4 billion dollars, in a joint venture to develop and produce next-generation image sensor chips.
The project should take shape in the prefecture of Kumamoto, in southern Japan, where TSMC already has its own production operations. The new company would be controlled by Sony with a stake of approximately 60%, while TSMC would hold the remaining 40%. The goal is to start production in 2029.
Sony and TSMC collaborate on next-generation sensors
The talks between the two groups they don't start from scratchIn May, Sony and TSMC announced preliminary discussions to build new production lines and development facilities at Sony's Kumamoto plant. The agreement aims to combine two complementary capabilities. Sony is the world's leading manufacturer of image sensors, widely used in smartphones and the automotive industry, while TSMC is the world's largest contract semiconductor manufacturer and will provide its process technologies and manufacturing capabilities.
The joint venture should focus on next-generation image sensors, but the scope of the collaboration could be expanded. According to what was reported by Nikkei, the two companies also intend to explore opportunities related to the so-called "physical artificial intelligence", especially for applications inautomotive and roboticsSony, which already owns a minority stake in TSMC's plant in the region, would then take control of the new industrial venture. The two companies have not publicly commented on the rumors about the size of the investment.
Japanese government subsidies are also on the table
The project is part of Kumamoto's growing role as a strategic hub for semiconductor production in Japan. Sony and TSMC are reportedly in discussions with the Ministry of Economy, Trade and Industry of Japan also the possibility of obtaining public support to accompany the investment.
In the event of government intervention, further expansion of production facilities in the prefecture is not ruled out. For Sony, the alliance would also allow it to share a significant portion of the necessary investments in chip production, while the Japanese group continues to allocate resources to other areas of business, including intellectual property, music rights, film, and video games. For TSMC, however, the new joint venture would represent a further step in its international expansion and strengthen the group's presence in Japan in a segment—sensors—that is poised to benefit from the growth of applications related to automobiles, robotics, and artificial intelligence.
TSMC also sees a 44,7% increase in revenues in July.
The industrial offensive comes as TSMC continues to churn out record numbers. In July 2026, the group recorded consolidated net revenues of NT$467,58 billion, approximately 14,5 billion U.S. dollars. Compared to NT$442,68 billion in June, revenue increased by 5,6 %, while the comparison with July 2025, when revenues were NT$323,16 billion, shows a leap of 44,7 %The first seven months of the year also confirm the speed of growth. Between January and July 2026, TSMC generated revenues of NT$2.872,06 billion, up 37% compared to the 2.096,21 billion of the same period in 2025.
A dynamic that keeps the group at the center of the global semiconductor chain. In its quarterly results, TSMC, a key supplier for groups such as Nvidia and Apple, had indicated third-quarter revenues of between 44,6 and 45,8 billion dollars, with an expected gross margin between 65% and 67% and an operating margin between 56% and 58%.
The potential alliance with Sony therefore comes amid a particularly intense expansion phase. TSMC is growing its revenues and, at the same time, continues to expand its international manufacturing footprint, with Japan increasingly central to the strategy of the world leader in custom chips.
