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Developing semiconductor chip business, Sony may build second factory in Kumamoto, Japan

Update time : 2023-05-29 13:38:26

On May 25, Sony Group will reportedly acquire about 27 hectares of land in Japan's Kumamoto Prefecture for its chip business. Another local media report said Sony will build its second manufacturing plant in Kumamoto here, and may invest hundreds of billions of yen.

Sony plans to buy more land near its image sensor factory in Japan's Kumamoto Prefecture to expand its market share in the growing smartphone camera business, the report said. The company supplies Apple Inc.'s iPhones and other devices.
Sony said it is in talks to acquire 27 hectares of land in Kumamoto to expand the northwestern part of Sony's existing factory. The company may invest hundreds of billions of yen in a second factory at the new site, according to reports.
Sony Group Inc. is considering building a new factory in Japan's Kumamoto Prefecture to produce smartphone image sensors, the Nihon Keizai Shimbun reported in late 2022. The company plans to break ground on the plant as early as 2024 and put it into operation as early as 2025, the report said.
Sony, a well-known global image sensor manufacturer, is said to have been manufacturing cutting-edge sensors in Kumamoto Prefecture's Kikuyo Town. Earlier, Terushi Shimizu, head of Sony's chip business, mentioned at an investor relations event that Sony now expects its share of the global image sensor market to reach 60 percent by the new fiscal year beginning in April 2025, now holding a little more than half of the market share.
Shimizu said the figure is growing despite a "tougher market environment" for image sensors in the current fiscal year. The majority of Sony's sensors are used in smartphones, which saw a double-digit decline in sales, Shimizu said, adding, "While we are considering the uncertainty ahead, we are preparing for the long term to ensure that we can capture growth opportunities when the market recovers in the future."
Sony is also pursuing growing demand for automotive image sensors, whose ability to capture images for analysis is critical for self-driving cars. shimizu said Sony expects revenue from automotive sensors to double in the year ending next March, with the goal of turning a profit in one to two years.

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