Taiwanese chipmaker TSMC and Sony Group 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 will ⁠be ⁠the controlling shareholder and invest 465 billion yen ($2.92 billion) through a combination of cash and asset transfers, including its newly constructed chip factory in Kumamoto prefecture, 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.

Sony will lead development of core image sensor technologies as well as product planning and design, while the venture will use TSMC's advanced process technology ‌and manufacturing expertise, the companies said.

The capital contributions will be made in phases depending on ​market demand ​and other ⁠business conditions, they said.

In addition to the investments by 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.

The companies first announced plans for the venture in May.