Sony Corp. is betting on self-driving cars as way to boost its semiconductor business and ensure sustainable growth, given the volatility in the smartphone market.

The electronics giant has developed a highly sensitive CMOS image sensor for automotive cameras to more precisely interpret signals from traffic lights and tail lamps that use light-emitting diodes.

Automotive cameras that respond to LED signaling are facing growing demand because cameras based on conventional sensors are less accurate. LED-driven signals from traffic signs flicker at higher speeds.

Sony’s new CMOS sensor is capable of capturing high-quality images in a wide dynamic range, even in situations with striking contrast, such as when cars enter or exit tunnels in daylight, the company says.

Sony plans to begin mass production of the new CMOS sensor next March.

The resurgent company is logging robust sales of image sensors, mainly for smartphones in China, but it is uncertain whether the business can maintain its current profitability, the Japanese arm of U.S. rating agency Moody’s Investors Service Inc. said.

In the meantime, Renesas Electronics Corp., which has withdrawn from the chip business for smartphones, has devised a kit that uses microcomputers to control vehicle information and movements. It is selling the kit to automakers and research institutions.

The chipmaker is promoting the unit’s energy-saving features and resistance to hacking as it moves to develop a product suited for fully autonomous cars by 2018.