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The words "joint venture" often make me assume 50/50 ownership. The Sony-TSMC agreement reminds me to read the control paragraph.
Sony plans to contribute about ¥465B through cash and transferred assets. TSMC plans about ¥282B in cash. Yet Sony will be the sole controlling shareholder, plans to appoint the representative director, and will consolidate the JV as a Sony subsidiary.
TSMC brings advanced process technology and manufacturing expertise, but that does not equal accounting control.
Timing matters. Contributions are expected in phases based on demand and other conditions. Image-sensor volume production is expected in 2029. The transaction still needs regulatory approvals and customary closing conditions.
My checklist for $TSMB is:
1. capital committed
2. control and consolidation
3. production start
4. approval risk
A large contribution can be strategically important without making the JV a 50/50 earnings vehicle. Before assigning revenue or profit to TSMC, I want to know how the economics will be reported.
Does Sony's control make the partnership less valuable to TSMC, or simply valuable in a different way?
The words "joint venture" often make me assume 50/50 ownership. The Sony-TSMC agreement reminds me to read the control paragraph.
Sony plans to contribute about ¥465B through cash and transferred assets. TSMC plans about ¥282B in cash. Yet Sony will be the sole controlling shareholder, plans to appoint the representative director, and will consolidate the JV as a Sony subsidiary.
TSMC brings advanced process technology and manufacturing expertise, but that does not equal accounting control.
Timing matters. Contributions are expected in phases based on demand and other conditions. Image-sensor volume production is expected in 2029. The transaction still needs regulatory approvals and customary closing conditions.
My checklist for $TSMB is:
1. capital committed
2. control and consolidation
3. production start
4. approval risk
A large contribution can be strategically important without making the JV a 50/50 earnings vehicle. Before assigning revenue or profit to TSMC, I want to know how the economics will be reported.
Does Sony's control make the partnership less valuable to TSMC, or simply valuable in a different way?