On Wednesday, Sony Group Corp’s (NYSE:SONY) semiconductor division announced it accomplished a significant milestone by shipping over 20 billion image sensors.

Sony Semiconductor Manufacturing accomplished the feat in just five years after reaching 10 billion units in May 2019.

In an interview with Nikkei, President Yoshihiro Yamaguchi highlighted Sony’s ambition to lead advancements in the image sensor sector.

According to Yamaguchi, Sony shows no signs of slowing its progress. A new manufacturing facility is under construction in Japan’s Kumamoto prefecture, a growing hub for the chip industry.

Sony Semiconductor Manufacturing initially entered the market with CCD (charge-coupled device) image sensors in the 1980s before transitioning to CMOS (complementary metal-oxide semiconductor) technology.

A Verge report indicated Apple Inc’s (NASDAQ:AAPL) transition to using Samsung Electronics (OTC:SSNLF) camera sensors for its iPhones as early as 2026, potentially ending Sony’s over-decade-long role as the exclusive supplier of iPhone camera sensors.

Supply chain analyst Ming-Chi Kuo said upcoming iPhones could feature Samsung’s “1/2.6-inch 48MP ultra-wide CMOS image sensors.” However, whether Samsung will replace Sony with other camera components remains to be seen.

In November, Sony reported fiscal second-quarter 2024 sales growth of 3% to $19.44 billion (2.91 trillion Japanese yen), missing the consensus estimate of $19.62 billion. EPS of $0.37 (55.74 yen) beat the consensus estimate of $0.27.

Imaging & Sensing Solutions revenue grew by 32% to 535.6 billion yen, and operating income climbed by 99% to 92.4 billion yen, backed by higher sales of image sensors for mobile products.

Sony Group stock surged 26% year-to-date.

Price Action: SONY stock is down 0.83% at $21.55 premarket at last check Wednesday.

Photo by Safaraz Yusuf via Shutterstock