Sony Corp. and Taiwan Semiconductor Manufacturing Co. (TSMC) are planning to invest about $6.3 billion (€5.4 billion) in a joint venture to produce advanced image sensors in Japan, according to Nikkei.

The proposed venture would bring together the world’s leading image sensor maker and the largest contract chip manufacturer as demand for high-performance sensors continues to grow in smartphones, vehicles and other electronic devices.

Under the reported plan, Sony would hold a 60% stake in the joint venture, while TSMC would own the remaining 40%. The companies are expected to finalise an investment agreement in the coming months.

Mass production could begin as early as 2029, Nikkei reported.

Production would take place at Sony Semiconductor Solutions’ existing facility in Kumamoto, southwestern Japan. The companies are expected to work together on the development and manufacturing of high-performance camera sensors at the site.

Image sensors convert light into electrical signals and are essential components in digital cameras and smartphone cameras. They are also increasingly used in vehicles for systems such as driver assistance, automated driving and monitoring.

Sony has established a dominant position in the global image sensor market, supplying components to major electronics and automotive companies. TSMC, meanwhile, operates semiconductor manufacturing facilities for technology companies around the world.

The proposed investment comes as manufacturers seek to expand advanced semiconductor production and strengthen supply chains. Japan has also been encouraging investment in domestic chip manufacturing as part of efforts to strengthen its semiconductor industry.

TSMC has already expanded its presence in Japan through its Kumamoto operations. The company is building semiconductor manufacturing capacity in the country as demand rises for chips used in automobiles, consumer electronics and industrial applications.

The planned image sensor venture would deepen cooperation between Sony and TSMC while giving both companies an opportunity to expand production of advanced components in Japan.

TSMC’s latest financial figures show continued growth in semiconductor demand. The company reported revenue of approximately NT$467.58 billion (€12.6 billion) in July 2026, up 5.6% from June and 44.7% compared with July 2025.

Revenue for the first seven months of 2026 reached NT$2,872.06 billion (€77.6 billion), representing a 37% increase from the same period a year earlier.

If completed, the Sony-TSMC venture would represent one of the larger planned investments in Japan’s semiconductor sector and strengthen cooperation between two of Asia’s most important technology companies.

Diageo, the world’s largest spirits maker, has announced a $1 billion cost-cutting and restructuring programme as new chief executive Dave Lewis moves to address years of weak sales and prepare the company for slower growth.

The drinks group, whose brands include Johnnie Walker, Guinness and Smirnoff, said it was abandoning its previous medium-term target of 5% to 7% organic net sales growth. It now expects growth in the low single digits through the 2029 financial year.

Investors responded positively to the announcement, viewing the plan as evidence that Lewis is taking decisive action to improve the company’s performance after a prolonged period of stagnant or declining sales.

Lewis, who became chief executive after senior roles at Tesco and Unilever, has previously gained a reputation for aggressive cost reduction. He was nicknamed “Drastic Dave” during his time at Tesco because of the scale of restructuring undertaken under his leadership.

The company has not yet disclosed how many jobs could be affected by the latest programme. Consultations remain under way in several regions, but Lewis warned that the restructuring would have a significant effect on employees as Diageo changes its cost structure.

The company is expected to make substantial changes to back-office operations across its global business. Areas with overlapping responsibilities between country, regional and global teams are likely to face further restructuring.

Diageo also plans to reduce spending on production capacity that was established in anticipation of stronger demand that did not materialise.

The company said the savings programme will be implemented over three years. The wider restructuring is expected to involve total costs of about $1.2 billion, with around 70% already incurred.

The announcement comes as the global beverages industry faces a difficult period. Consumer drinking habits have changed significantly since the pandemic, with customers changing what they drink, how much they consume and where they purchase alcoholic beverages.

High inflation and pressure on household budgets have also weakened demand in several markets. At the same time, younger consumers and health-conscious customers have increasingly turned towards low- and no-alcohol alternatives.

Diageo is not alone in responding to the changing market. Other major drinks companies, including Heineken and Pernod Ricard, have introduced cost-cutting programmes and workforce reductions as they attempt to protect profits while adapting to weaker demand.

Lewis’s restructuring marks a major change in direction for Diageo as the company prepares for a period of slower sales growth and seeks to improve efficiency across its international operations.