Sony to Spend $492M to Expand CIS Capacity

International Herald Tribune: Sony Corp. said Wednesday it will invest 60 billion yen (US$492 million; €363.4 million) to ramp up production of image sensors used in digital cameras.

The expansion at Sony's Kumamoto image sensor factory in southern Japan will span the next three years, the company said in a statement.

Tokyo-based Sony did not say by how much output would be boosted, but the Nikkei business newspaper said the investment will increase capacity by 20 percent.

The Kumamoto facility makes CMOS sensors and micro-display devices that are used in hot-selling camera-equipped mobile phones and digital cameras. Sony is increasing its production capacity to match an expecting surge in Japan.

Update: ZDNet too reports that with $494.3 million investment, Sony will boost its output capacity of CMOS censor chips. Analysts say Sony may face an uphill battle in its planned expansion in its sensor chip operations.

Since Sony is relatively new to the CMOS market, it will likely need to offer its products at aggressive prices to compete with established makers such as Micron Technology and Toshiba, hurting its profitability, said Yoshihisa Toyosaki, president of research firm j-STAR Global.

Update June 7: EDN has an expanded article on the same matter. Sony said it is positioning image sensors as a key focus area of its semiconductor business.

Sony Corp. announced that it would invest approximately $493.1 million (60 billion Japanese yen) in Sony Semiconductor Kyushu Corp.'s Kumamoto Technology Center (Kumamoto TEC) Fab 2 facility in Japan. The money will be used to extend clean room facilities by 5,000-sq. meters and reinforce image sensor fabrication capacity. The mass production have already commenced at Fab 2's existing 5,000-sq. meter facility in the spring of this year.

Update June 7: Tech-On gives even more details on Sony plans. Currently, only Sony Semiconductor Kyushu manufactures Sony's CMOS sensors on mass production lines, with the capacity of three million units per month. The extended clean room will mainly be used to increase the production of CMOS sensors for camera cell phones and digital cameras.