Taipei, Aug. 12 -- Taiwan Semiconductor Manufacturing Co. (TSMC) and Sony Semiconductor Solutions Corp. agreed on Tuesday to establish a joint venture to develop and manufacture next-generation image sensors. According to a news report by Focus Taiwan, the two companies signed a legally binding definitive agreement to create Advanced Vision Semiconductor Manufacturing Corp. in Koshi City, Kumamoto Prefecture, Japan.

In a statement, TSMC, the world's largest contract chipmaker, said the newly established firm will serve as a central hub for the development and manufacturing operations required to bring next-generation smartphone image sensors into commercial production. The company noted that the joint venture is scheduled to start commer...