Konica Minolta (TYO:4902) has unveiled a 1.8 billion yen investment plan to significantly ramp up its output of optical components used in semiconductor testing equipment, Nikkei Asia reported Thursday, citing the company.

The imaging products manufacturer aims to increase production capacity to 2.6 times the level recorded two fiscal years ago by the next financial year, the publication said.

The expansion is driven by the rapid adoption of generative AI, which has intensified the need for inspecting advanced chips destined for data centers, the new agency said.

Currently, the company's lenses are primarily utilized during the front-end stage of wafer processing; however, the firm anticipates a surge in demand for back-end processes like chip packaging, which are critical for AI applications, the report added.

To meet this projected growth, Konica Minolta will add new lens-processing equipment at its Osakasayama factory and establish additional production lines at its Hachioji facility in Tokyo, it said.

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