Sony accelerates its asset-light transformation! It is reported that it may co-invest $6.4 billion with Taiwan Semiconductor to jointly build an image sensor factory in Japan

According to the Zhitong Finance APP, Sony (SONY.US) and Taiwan Semiconductor (TSM.US) are discussing plans to jointly invest approximately 1 trillion yen (about 6.4 billion USD) to build a joint chip factory in Japan, according to a person familiar with the relevant plans. The person stated that Sony's chip business subsidiary, Sony Semiconductor Solutions Corporation, is collaborating with Taiwan Semiconductor to develop next-generation image sensors for the robotics and automotive sectors. The factory is expected to begin production in 2029.

According to previous reports, the investment plan under discussion is the latest initiative for Sony's image sensor business to transition to a more asset-light operating model. In recent years, Sony has been allocating more resources to intellectual property assets, such as music distribution rights, film businesses, and video game series IP, rather than continuously expanding investments in traditional hardware assets.

This strategy has yielded returns. The company's financial report released at the end of July showed that first-quarter sales increased by 8% year-on-year to 2.8378 trillion yen, exceeding analysts' expectations by 120.3 billion yen; operating profit was 476.5 billion yen, a staggering 40% increase year-on-year, far surpassing the moderate growth levels generally expected by analysts; net profit attributable to shareholders was 342.2 billion yen, a 32% year-on-year increase.

Sony's well-known IPs, such as "Spider-Man," continue to generate substantial returns, while its music business—comprising several record labels including Columbia Records and RCA Records—continues to benefit from the growth of streaming services. Sony stated that first-quarter music business sales increased by 21% year-on-year, significantly outpacing its gaming business, which saw sales "remain basically unchanged."

Sony has also raised its full-year profit forecast. The company currently expects its operating profit for the fiscal year 2026 to reach 1.72 trillion yen, higher than the average analyst expectation and above the previously set target of 1.6 trillion yen.

Sony and Taiwan Semiconductor previously stated that the project will be located in Kumamoto Prefecture in southern Japan. Taiwan Semiconductor is already building its own chip manufacturing plant in the area. If the Japanese government provides support, the project may expand further in the future. Sony is currently one of the minority shareholders in Taiwan Semiconductor's chip manufacturing base in the region, and in this new joint venture (JV), Sony will become the controlling shareholder.

For a long time, Sony has supplied high-end image sensors to companies such as Apple and Samsung Electronics. In recent years, Sony has also been seeking to expand its sensor business, extending its application fields to the automotive and robotics markets