Taiwan Semiconductor Manufacturing Co. (TSMC) and Sony Semiconductor Solutions Corp. signed a non-binding memorandum of understanding to establish a joint venture. The partnership will focus on developing and producing next-generation image sensors.

The collaboration targets emerging opportunities in physical artificial intelligence. Primary applications include advanced driver-assistance systems and robotics.

Sony will serve as the majority and controlling shareholder. The venture will locate its development and production lines at Sony’s new factory in Kumamoto, Japan.

This alliance signals a shift in AI hardware from data centers to intelligent edge devices. The move reinforces the role of specialized chips in the automotive and robotics supply chains.