Tokyo, Japan – September 13th, 2024– Morpho, Inc. (hereinafter, “Morpho”), a global leader in image processing and imaging AI solutions, announces that, as resolved at a Board of Directors meeting held on September 13, 2024, an equity and business partnership is being launched with Sony Semiconductor Solutions Corporation (hereinafter “SSS”), a wholly-owned subsidiary of the Sony Group Corporation and a leader in semiconductor device businesses, including image sensors.
The Morpho Group is committed to maximizing customer value through technology innovation in line with its corporate vision: “Rise above what we see, to realize what we feel.” It also strives to contribute to resolving social issues by improving daily-life convenience, providing safe and secure living environments, and increasing productivity.
However, Morpho faces the problem of investment effects taking time to appear in business operations, and it anticipates that the payback period for future investments will be medium- to long-term. Therefore, it is recognized that raising equity capital and maintaining financial soundness are essential to stabilize business operations during investment periods.
To address these challenges, an optimal solution would be a combination of equity financing and a business partnership with a company offering potential business synergies. In view of that, Morpho has decided to enter into an equity and business partnership with SSS, with the aim of establishing a collaborative relationship in both business and equity aspects, based on a business alliance agreement.
The funds raised through this alliance will be allocated to investments in the Morpho Group’s growth businesses, which are expected to contribute to increasing Group sales and profitability, as well as enterprise value. Meanwhile, SSS will expand its business through collaborating with the Morpho Group in software development. Going forward, SSS and the Morpho Group will discuss ways to strengthen and develop their business partnership in order to further enhance Morpho’s enterprise value by combining SSS’s knowledge and expertise in image sensors with the Morpho Group’s technical and business development capabilities in image processing and AI.
– Providing cutting-edge AI technologies for embedded devices, one of Morpho’s areas of strength.
– Utilizing Morpho’s technologies and human resources in products and services provided by SSS to its customers.
– Conducting research and development using both companies’ technologies, know-how, information, etc.
– Other initiatives agreed upon through mutual consultation.
(1) Investment in Research and Development
The funds will be used for R&D investments in new image recognition and image quality enhancement technologies using AI, with a focus on sectors expected to experience significant growth, such as vehicle-mounted cameras and other mobility technologies, as well as smartphones and other smart devices. R&D investments include the following:
– Developing software to improve surround-view quality based on the conditions of vehicle-mounted cameras.
– Developing software to sense subjects captured by cameras and their distances with a high degree of accuracy.
– Developing software to significantly improve visibility in poor image-capturing conditions.
(2) Investment in Human Resources
To ensure Morpho’s continued growth, investments will cover recruitment and other talent acquisition expenses for securing talented individuals, which are essential for advancing research and development in image processing and AI, as well as for bolstering business development capabilities to continue delivering high-quality services.
Through these initiatives, Morpho will maintain its focus on the strategic business areas of smart devices, in-vehicle and mobility technologies, and digital transformation (DX), further accelerating its growth.
For further details, please refer to Morpho’s disclosure information released on September 13, 2024.
SSS is a wholly-owned subsidiary of the Sony Group Corporation that operates semiconductor device businesses including image sensors. As a leading company in image sensors, SSS not only provides imaging technology that brings convenience and enjoyment to individuals but also develops and adopts new sensing technologies, offering a variety of solutions that ultimately enhance the visual and image-recognition capabilities of both humans and machines.
– Website: https://www.sony-semicon.com/en/index.html
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