Sony to Boost Chip Output Once Again
High demand for the Emotion Engine and Graphics Synthesizer are causing more production to meet quotas.
Published: September 14, 2000
Sony raised its forecast of chip production on Tuesday for the second time in three months due to strong global demand for digital cameras.
The electronics manufacturer said it now expects to produce 400 billion yen worth of chips in the year to March 2001, up from July's forecast of 360 billion yen and April's 340 billion yen. The revisions reflect increased global demand for semiconductors such as liquid crystal displays (LCDs) and charge-coupled devices (CCDs), used mainly for digital camcorders and digital still cameras, a Sony spokesman said. Sony has been gearing up to invest heavily in production of semiconductors, which are a potential earnings pillar.
Sony, the world's second-largest home electronics manufacturer after Matsushita Electric Industrial Co Ltd , said in August it would spend 100 billion yen by March 2006 to build a new semiconductor plant in Japan. For this business year, Sony plans to spend 95 billion yen on semiconductors on a parent-only basis. Sony's game-making unit plans separately to invest 125 billion yen to boost output of chips for its PlayStation2 game console and other home electronics.
Shares in Sony fell 130 yen or 1.11 percent to end the Tuesday morning session at 11,570 yen, weighed down by overall weakness in the Tokyo stock market.
The electronics manufacturer said it now expects to produce 400 billion yen worth of chips in the year to March 2001, up from July's forecast of 360 billion yen and April's 340 billion yen. The revisions reflect increased global demand for semiconductors such as liquid crystal displays (LCDs) and charge-coupled devices (CCDs), used mainly for digital camcorders and digital still cameras, a Sony spokesman said. Sony has been gearing up to invest heavily in production of semiconductors, which are a potential earnings pillar.
Sony, the world's second-largest home electronics manufacturer after Matsushita Electric Industrial Co Ltd , said in August it would spend 100 billion yen by March 2006 to build a new semiconductor plant in Japan. For this business year, Sony plans to spend 95 billion yen on semiconductors on a parent-only basis. Sony's game-making unit plans separately to invest 125 billion yen to boost output of chips for its PlayStation2 game console and other home electronics.
Shares in Sony fell 130 yen or 1.11 percent to end the Tuesday morning session at 11,570 yen, weighed down by overall weakness in the Tokyo stock market.
