Japan has approved major financial support for Sony Group to strengthen domestic semiconductor production, with a clear focus on AI image sensors.

The subsidy, worth up to 60 billion yen (around $380 million), has been granted under Japan’s Economic Security Promotion Law by the Ministry of Economy, Trade and Industry. The move is part of a broader national effort to secure a stable supply of critical semiconductor components and reduce dependence on external manufacturing.

Sony Semiconductor Solutions plans to invest a total of 180 billion yen (around $1.13 billion) to build a new semiconductor facility in Koshi, Kumamoto Prefecture. Construction is already underway. The plant is expected to produce 10,000 units per month of 300mm wafers, with supply scheduled to begin in May 2029.

The government has identified image sensors as essential for future technologies. Key applications include autonomous vehicles, automated industrial systems, and AI-driven imaging solutions. Economy Minister Ryosei Akazawa highlighted the importance of ensuring a stable supply of these components for the growth of physical AI.

Sony already leads the global image sensor market, with its sensors widely used in smartphones, automotive systems, and other advanced technologies.

The development reflects Japan’s broader push to strengthen its semiconductor ecosystem and stay competitive in AI and next-generation imaging technologies.

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(via)

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