Sony Investing $578M in Producing Computer Chips

Not Playstation related directly, but it seems to show continued interest in producing their own technology as opposed to buying them from outside sources.


Tuesday December 21, 4:15 am ET

TOKYO (AP) -- Sony Corp. will invest about 60 billion yen (US$576 million; euro430 million) over the next two years to boost semiconductor production capacity at two factories in southern Japan, the company said Tuesday.

The move is aimed at increasing in-house production of core computer chips critical to making Sony products, the Japanese electronics and entertainment giant said.

Tokyo-based Sony has been trying to strengthen in-house production of computer chips and other key components in an effort to fix lagging profits in its core electronics business.

Sony will raise chip output in Kokubu and Kumamoto cities, both in Japan's southern Kyushu region.

In Kokubu, the company will invest about 10 billion yen (US$96 million; euro72 million) to make chips for liquid crystal displays and small LCD-projector panels for big-screen high-definition rear-projection television sets.

Sony now buys most of its LCD driver chips. The investment will allow Sony to produce such chips as it plans to make LCD panels for TVs in a joint venture with South Korea's Samsung Electronics Co. starting next year.

In Kumamoto, Sony said it will invest 50 billion yen (US$480 million; euro359 million) to make a new production wing and introduce equipment to make image-sensor chips and charge-coupled devices, which are used in digital cameras.
 
Maybe a little OT question but this joint venture with Samsung starting in 2005 is related only to the fabrication of LCD panels?Or we'll see Sony-Samsung branded LCD TVs next year?
For the rest of the article no surprise,Kutaragi has always stated they want to invest in semiconductor technology so that they can have larger margins on their electronics products.
 
Good move IMHO: Samsung has already showed in the past (and SCE has done that too as well) that strong in-house production of the vast majority of your components can be very good in the long term.
 
Dude! You could buy so many Chupa Chups for $578 million. Sony has their priorities messed up. *sigh*
 
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