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South Korea’s SK Hynix has set up an image sensor research center in Japan, a powerhouse in the field of imaging sensor chips led by Sony Corporation. The world’s No. 2 memory chip maker aims to leverage its R&D resource there to attract top research talent and close its technology gap with global players in the system semiconductor, according to industry sources on Tuesday.

The new research center named Japan CIS R&D Center is located in Tokyo and will be led by Masayuki Shimura, who had worked at Sony for 18 years from 1997. He also worked at Huawei before joining SK Hynix as research head for next-generation image sensor technology.

The research center is designed to take advantage of various R&D resources across Japan and joint research projects with universities in Japan will contribute to the company’s image sensor business, said Shimura.

SK Hynix currently runs two image sensor production lines at Icheon and Cheongju sites in Korea. Part of its DRAM lines was converted into a line for image sensors this year to meet the growing market needs while adjusting production of DRAMs against oversupply.

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Image sensors sales account for a mere 2 to 3 percent of SK Hynix's total revenue, with most of its products for 13 million-pixel mobile devices. SK Hynix is planning to respond to the demand for high-capacity mobile devices by expanding its line up by adding 16 million-pixel products this year and up to 48 million-pixel products next year.

Demand for image sensors are on a sharp rise as more businesses look for high-end digital camera in various applications powered by disruptive technologies such as 5G mobile communication, autonomous driving, artificial intelligence and the Internet of Things. According to market research firm TSR, the global image sensor market is expected to grow from $13.3 billion last year to $24.4 billion in 2023.

The global market is dominated by Sony and Samsung Electronics with 49.9 percent and 19.6 percent market share, respectively last year, according to IHS Markit. SK Hynix ranked fourth in the market with a 5.6 percent market share.

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