French-Italian eyewear brand EssilorLuxottica, the maker of Ray-Ban and Oakley glasses, has secured approval from Japan’s government to raise its stake in Nikon to as much as 20%, making it the company’s largest shareholder.

The move follows a review under Japan’s Foreign Exchange and Foreign Trade Act, which regulates foreign investment in sectors deemed vital to national security, including semiconductor technology.

Nikon, best known for its cameras, also manufactures lithography systems used in chip production, a field increasingly seen as strategically sensitive amid global technology competition.

According to filings made to Japan’s Finance Ministry, EssilorLuxottica has already increased its holding in Nikon to 10.8%, up from 9.6%.

The approval now gives the Paris-listed eyewear giant the green light to double its stake over time.

Nikon’s shares jumped nearly 6% on the news, continuing a rally that began when speculation about the deal first surfaced in August.

EssilorLuxottica and Nikon have a long-standing relationship dating back to 2000 when they launched Nikon-Essilor, a Tokyo-based joint venture producing prescription and optical lenses.

The two companies have also collaborated on advanced eyewear technologies, including work with Meta on developing next-generation smart glasses.

While neither company has disclosed further details on future plans, the stake increase underscores growing foreign investor interest in Japan’s high-tech manufacturing sector.

The move also follows a trend of tighter scrutiny under Japan’s foreign investment laws – similar to the seven-month review that preceded Taiwan’s Yageo acquiring sensor maker Shibaura Electronics earlier this year.