The industry ministry said Friday that it will provide up to ?60 billion ($375 million)?in aid for a state-of-the-art image sensor plant being built in southwestern Japan by Sony.
The state aid is intended to help ensure a stable supply of semiconductors, designated as a specified important item under the economic security promotion law. The aid will be used for production and other facilities.
Image sensors are used for smartphone cameras and cameras for self-driving vehicles.
The plant in the city of Koshi, Kumamoto Prefecture, is being constructed by subsidiary Sony Semiconductor Manufacturing, based in the Kumamoto town of Kikuyo, at a total cost of ?180 billion. The factory is expected to have a monthly production capacity of 10,000 300-millimeter wafers, with supplies seen starting in May 2029.
Sony, which already has the world¡¯s largest share of image sensors, aims to strengthen production and sales further as development competition is intensifying amid the growing presence of Chinese and South Korean rivals.
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