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Sony to Get ¥60 Bil. Subsidy for New Chip Plant in Kumamoto Pref.

Yomiuri Shimbun file photo
Sony Corp. headquarters building in Minato Ward, Tokyo

The government has firmed up a plan to provide a ¥60 billion subsidy to Sony Group Corp. for its new image sensor plant in Koshi, Kumamoto Prefecture, that is currently under construction.

The financial support is intended to bolster the production base for automotive image sensors, which play an increasingly vital role in ensuring economic security, according to sources.

The Economy, Trade and Industry Ministry is set to approve a program aimed at securing a stable supply of the sensors under the Economic Security Promotion Law.

The government will provide up to one-third of the ¥180 billion needed for production equipment and other facilities at the new factory, which is currently being constructed by Sony Group’s manufacturing arm Sony Semiconductor Manufacturing Corp., the sources said.

Sony holds a dominant 56% of the global market share for smartphone image sensors.

However, South Korea’s Samsung Electronics Co. and U.S.-based OmniVision Technologies Inc., a subsidiary of a Chinese firm, are rapidly closing the gap by leveraging technology and production facilities developed in their other semiconductor businesses.

Sony aims to have the factory begin operating in May 2029. With government support, Sony plans to introduce cutting-edge processing technology to the factory, the sources said.