In a strategic move to bolster its chip business, Sony Corporation has announced its plan to acquire approximately 27 hectares (270,000 square meters) of land in Kumamoto Prefecture, Japan. According to reports from Bloomberg News and local media sources, the company intends to construct its second manufacturing plant in Kumamoto, with a potential investment reaching hundreds of billions of yen.
The Production is expected to begin in 2025
The primary objective behind this expansion is to accelerate Sony’s development in the competitive chip business sector and cater to the growing demand for Sony semiconductors in the global market. This move aligns with Sony Group’s previous considerations, as reported by IT Home in December last year, of building a new factory in Kumamoto Prefecture specifically for producing smartphone image sensors. The initial timeline proposed breaking ground in 2024, with production commencing as early as 2025.
Sony Semiconductor Solutions, a subsidiary of Sony Semiconductor, currently holds the top position in terms of revenue share, commanding 44% of the market. Following closely are Samsung System LSI and OMNIVISION. Together, Sony, Samsung, and OMNIVISION control almost 83% of the global smartphone image sensor market, according to IT Home.
Shimizu Terushi, president of Sony Semiconductor Solutions, acknowledged the prevailing semiconductor shortage and emphasized the significance of TSMC’s decision to establish a factory in Kumamoto. Terushi stated that this development has “increased confidence” in expanding procurement channels. Consequently, Sony’s acquisition of land in Kumamoto can be seen as a strategic measure to enhance its own production capacity and secure reserve space.
By investing in a second manufacturing plant in Kumamoto, Sony aims to fortify its position in the chip business, effectively meeting the rising demand for its high-quality semiconductors. With its continued commitment to innovation and expansion, Sony is poised to make substantial strides in the global market, further solidifying its presence as a key player in the industry.
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(Via)
