Sony chip device sees minimal affect from the latest export curbs to China

By Kiyoshi Takenaka and Mayu Sakoda

TOKYO (Reuters) – Sony Team Corp’s semiconductor division will probable see a limited influence from chip export curbs to China by the United States, Japan and the Netherlands, Sony Semiconductor Solutions Chief Executive Terushi Shimizu claimed on Thursday.

Sony is the world’s largest maker of picture sensors greatly made use of in smartphones and autos. Its competitors consist of South Korea’s Samsung Electronics Co Ltd.

The United States introduced sweeping curbs on semiconductor exports to China in Oct very last year to slow Beijing’s technological and military developments. The Netherlands and Japan final month also agreed on chip-associated export limitations, while no aspects are out there.

Shipments of Sony’s protection digital camera-associated solutions could be affected by the U.S. export curbs, Shimizu advised Reuters, but “it will only be a very small bit”.

The destructive impression to its revenue will probably exceed one billion yen ($7.47 million), but be down below 10 billion yen, or less than 1% of the unit’s total earnings.

The chip division expects total gross sales to come to 1.42 trillion yen for the year ending March 31, 2023.

Shimizu mentioned the firm’s microchip operations will be little influenced by the wider curbs, as the division does not generally manage slicing-edge chips.

The chip unit’s chief govt also said that smartphone demand will probable recuperate from the 2nd 50 percent of 2023.

Global smartphone shipments strike 1.2 billion units in 2022, the least expensive considering that 2013, according to investigate firm IDC.

Sony’s chip division is investing $500 million in Taiwan Semiconductor Production Co’s (TSMC) chip-building subsidiary, a step aimed at securing a steady source of logic chips utilised to manufacture graphic sensors.

The subsidiary’s $8.6-billion plant in Japan is slated to start output by the conclusion of 2024, and TSMC explained last thirty day period it was taking into consideration building a next plant in Japan.

“We have not listened to from them on when this 2nd stage will be launched. But the point that they have created this sort of a comment for people outdoors the company may possibly suggest they have started taking some action,” Shimizu explained.

Sony’s semiconductor division posted report income and operating financial gain in October-December, assisted by robust demand from customers for impression sensors and a softer yen.

Shimizu explained the division was “mostly on monitor” to achieve a 60% sector share in the world wide graphic sensor market by the calendar year to March 2026, up from 43% in the year to March 2022.

($1 = 133.8700 yen)

(Reporting by Kiyoshi Takenaka and Mayu Sakoda Modifying by Raissa Kasolowsky, Shounak Dasgupta and Sharon Singleton)