Sony slashes semiconductor chip coin

Amount will be cut in a new three-year plan

TOKYO — Sony will sharply cut coin spent on semiconductor chips, Sony executive deputy president Yutaka Nakagawa told reporters Tuesday.

From 2004 to 2006, Sony invested ¥460 billion ($3.8 billion) in its chip business. That amount will be slashed in the new three-year plan, starting in fiscal 2007, to around $2.48 billion.

One aim is to boost the profitability of the semiconductor division and the company as a whole. Another is to lower the prices of Sony products, particularly the PlayStation 3, which has been outsold three to one in the Japanese market by the far cheaper Nintendo Wii console since both launched in November.

Instead of developing and manufacturing chips for next-generation games and other Sony hardware inhouse, the company intends to source more of its chip needs from subcontractors in Taiwan.

Sony’s chip business is currently focused on CMOS sensors for the lenses of digital cameras; cell chips for game consoles, including the PS3; and chips for LCD TVs and other digital consumer products. Company plans to begin switching to next-generation 45-nanometer chips by 2009.

Semiconductor division sales are projected to total $6.36 billion for the fiscal year ending in March, accounting for 9.4% of Sony revenue. While sales are up 57% from the previous year, the relatively high cost of inhouse chips has helped make the PS3 significantly pricier than its Nintendo and Microsoft rivals. That’s contributed to slower-than-expected sales — and a $54.2 million loss for Sony’s game division in the third quarter of fiscal 2006.

More Biz

  • Univision logo

    Univision Plans to Name Vince Sadusky CEO (Reports)

    TOKYO — Sony will sharply cut coin spent on semiconductor chips, Sony executive deputy president Yutaka Nakagawa told reporters Tuesday. From 2004 to 2006, Sony invested ¥460 billion ($3.8 billion) in its chip business. That amount will be slashed in the new three-year plan, starting in fiscal 2007, to around $2.48 billion. One aim is […]

  • Comcast

    Comcast Says It's Ready to Outbid Disney for 21st Century Fox

    TOKYO — Sony will sharply cut coin spent on semiconductor chips, Sony executive deputy president Yutaka Nakagawa told reporters Tuesday. From 2004 to 2006, Sony invested ¥460 billion ($3.8 billion) in its chip business. That amount will be slashed in the new three-year plan, starting in fiscal 2007, to around $2.48 billion. One aim is […]

  • Pokemon World Championships

    Japan's Imagica Robot Holdings to Be Renamed Imagica Group

    TOKYO — Sony will sharply cut coin spent on semiconductor chips, Sony executive deputy president Yutaka Nakagawa told reporters Tuesday. From 2004 to 2006, Sony invested ¥460 billion ($3.8 billion) in its chip business. That amount will be slashed in the new three-year plan, starting in fiscal 2007, to around $2.48 billion. One aim is […]

  • PHILIP ROTHF.SCOTT FITZGERALD

    Pulitzer Prize-Winning Author Philip Roth Dies at 85

    TOKYO — Sony will sharply cut coin spent on semiconductor chips, Sony executive deputy president Yutaka Nakagawa told reporters Tuesday. From 2004 to 2006, Sony invested ¥460 billion ($3.8 billion) in its chip business. That amount will be slashed in the new three-year plan, starting in fiscal 2007, to around $2.48 billion. One aim is […]

  • CBS Intends to Challenge National Amusements

    CBS Intends to Challenge National Amusements Bylaw Changes

    TOKYO — Sony will sharply cut coin spent on semiconductor chips, Sony executive deputy president Yutaka Nakagawa told reporters Tuesday. From 2004 to 2006, Sony invested ¥460 billion ($3.8 billion) in its chip business. That amount will be slashed in the new three-year plan, starting in fiscal 2007, to around $2.48 billion. One aim is […]

  • R. KellyR. Kelly in concert at

    R. Kelly’s Streaming Numbers Actually Went Up After Spotify Playlist Ban

    TOKYO — Sony will sharply cut coin spent on semiconductor chips, Sony executive deputy president Yutaka Nakagawa told reporters Tuesday. From 2004 to 2006, Sony invested ¥460 billion ($3.8 billion) in its chip business. That amount will be slashed in the new three-year plan, starting in fiscal 2007, to around $2.48 billion. One aim is […]

More From Our Brands

Access exclusive content