Sony CIS Recovery Expected No Earlier than in FY2022

Nikkei Asia: Sony CIS sales are heavily affected by a drop in sales of Huawei smartphones. "Although Sony has avoided a fall in the volume of shipments thanks to orders from other Chinese smartphone makers, the recovery of earnings appears likely to be delayed until fiscal 2022 through March 2023 because of weakened demand for sensors for high-end smartphones.

"We cannot achieve an earnings recovery in the year through March 2022," said Terushi Shimizu, president and CEO of Sony Semiconductor Solutions, at a press briefing on June 3.

With Samsung boasting microfabricating technology needed for high pixel sensors, Shimizu said, "We are actually falling behind as far as high pixels are concerned."

But, he added, "we will add new value using technology cultivated in the field of high image quality."

The procurement of logic chips has become difficult as even Sony farms out most of production to overseas manufacturers. Asked whether Sony Semiconductor will launch production, including a joint venture project, for stable procurement, Shimizu admitted to the difficulty of producing them on its own in terms of both technology and cost.

"Generally speaking, it is extremely meaningful to receive state support," Shimizu said, suggesting the need for government financial assistance for production."