25 February 2019
Sony is planning to spend half of its capital expenditures, i.e. approx. 600 billion yen ($5.4 billion) on imaging sensors, according to reports. The company has announced that it will be making the investment is a three-year plan ending in March 2021. Apart from that, the company will assign 40% of its new engineer hires in Japan to its chip business over the next two years.
Sony is betting big on its chip business that includes its imaging sensors. The company is preparing to ramp its chip-making division in anticipation of growth from new applications, which include phones, smartphones, cameras, and automotive applications, among others. The company is dominating more than half of the imaging sensor market for smartphones as of now. It has also announced plans to hire 320 new engineers annually in Japan this year. However, its annual profit outlook for imaging sensors this month is 130 billion yen which is just 15% of the group’s overall profit, due to weakening global demand for smartphones.
Sony’s gaming business is showing signs of slow down as its popular PlayStation 4 (PS4) console is nearing the end of its lifecycle. The company is gearing up to launch it's PlayStation 5 in 2020, according to reports. Investors are looking for the company’s next profit pillar as the gaming business sees a slowdown.