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.