Friday, May 13, 2016

Sony Kumamoto TEC Status, 4th Update

Sony publishes the 4th update on its recovery from Kumamoto fab damage:
  • Operations at Sony Kumamoto Technology Center (located in Kikuchi Gun, Kumamoto Prefecture), which is the primary manufacturing site of image sensors for digital cameras and security cameras, had been suspended due to the impact of the earthquakes.
  • However, as of May 9, 2016, testing operations, which are one of the back-end processes carried out on the upper layer of the building, have resumed and other back-end processes, such as assembly, are also expected to restart sequentially beginning May 17, 2016.
  • Wafer processing operations located on the lower layer of the building are expected to restart sequentially beginning May 21, 2016.
  • Although there was a delay in the supply of components to Sony from certain third-party suppliers that also have manufacturing facilities in the Kumamoto region, inventory adjustments have been made and a timeframe for regaining supply levels is now in place, so no material impact is anticipated on Sony's business operations.
  • The impact on Sony's consolidated results due to the effect of the earthquakes, including from opportunity losses, as well as expenses for recovery and reinforcement work, continues to be evaluated.

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