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Sony Semiconductor Manufacturing Corp. is expected to begin production at a new plant under construction in Kumamoto Prefecture, southwestern Japan.
Industry minister Ryosei Akazawa told a press conference after a Cabinet meeting that the government expects the initiative to help ensure stable supplies of image sensors, which he described as "key devices in the age of artificial intelligence."
Image sensors, which convert light into electrical signals for image processing, are widely used in smartphones and automotive cameras. Demand has risen with the expansion of AI-related applications and automotive technologies.
Prime Minister Sanae Takaichi is seeking to ramp up investment in areas critical for economic security. The subsidy is based on Japan's economic security promotion law.
