Sony to Invest $805 Million to Increase CMOS Image Sensor Production

by Sohrab Osati | Feb 3, 2015 | 0 comments
Sohrab Osati

Sony_Image_SensorOn the heels of announcing the closure of the Japanese Sony Semiconductor Oita Technology Center, the plant responsible for the Cell processor and RSX chip inside the PS3, Sony has revealed a hefty invest plan. According to their press release, Sony will be investing $805 million (approximately 105 billion yen) in their Nagasaki TEC and Yamagata TEC plants. These two factories are responsible for Sony’s CMOS image sensor production which powers the company’s imaging division. Beyond Sony’s own fleet of smartphones and DSLR, Sony has been ever expanding its reach into the medical space by utilizing their image sensors and 3D technology to create better scanners and other related equipment for doctors. Apple has also been one of Sony’s largest clients and has been using Sony sensors in their smartphone lineup since the iPhone 4S.

So what does Sony hope to achieve with their hefty investment? Let’s talk after the jump.

As Sony expands its image sensor beyond its own core products, production level needs to match the new demand, especially when you have high profile clients like Apple which are able to sell 10 million units in just one weekend. Just last week, Apple posted their quarterly results, revealing nearly 75 million iPhones sold during the quarter which all use Sony’s 8-megapixel image sensor. With the new $805 million investment, Sony hopes to increase production at their Nagasaki TEC and Yamagata TEC plants to approximately 80,000 wafers per month versus the current 60,000 wafers per month.

While 2014 was a mixed year for Sony and didn’t turn out to be the year that the company would return to being profitable, 2015 is already off to a better start. The fact that CEO Kaz Hirai is going through each division and slashing parts where he feels like are hindering the over all vision of Sony and investing in parts he sees as part of their future is an encouraging sign. Sony fans at this point are used to hearing depressing news out of Sony and a news that shows growth in such an important part of Sony with a hefty investment to follow should hopefully reaffirm their belief in the company’s long term viability.

Discuss:

Do you see this an an encouraging sign for Sony’s future?

[Via Sony]