TAIPEI, Aug 11 (Reuters) - Taiwanese chipmaker TSMC

and Sony Group ( SONY ) said on Tuesday they will form

a $4.69 billion joint venture to develop and make

next-generation image sensors in southern Japan, with volume

production expected to start in 2029.

Sony ( SONY ) will be the controlling shareholder and invest 465

billion yen ($2.92 billion), while TSMC will invest 282 billion

yen, the companies said in a joint statement.

The venture, Advanced Vision Semiconductor Manufacturing

Corp, will be based in Kumamoto, where TSMC operates its Japan

Advanced Semiconductor Manufacturing (JASM) chip plant.

The joint venture will serve as a core hub for the

development and production of image sensors for smartphones,

using advanced manufacturing technology, the companies said.

In addition to the investments by Sony ( SONY ) and TSMC, the

companies said funding needed to achieve the planned production

capacity is being considered on the assumption that Japanese

government support will be available.

($1 = 159.3300 yen)