Sony Lays Out Semiconductor Spending Plans
Sony Corp. (Tokyo) announced plans to spend a total of $8.4 billion (1 trillion yen) on semiconductor investment and research and development in the next three years. About half of that will be spent on capital investment for semiconductors like CELL and imaging devices where Sony expects growth of about $1.5 billion (175 billion yen) in its fiscal 2003, started April 1. The remaining $4.2 billion (500 billion yen) will be spent on research and development for key devices for product enhancement.
As for restructuring, Sony said it will spend $2.5 billion (300 billion yen) for measures centered on the electronics business, including rationalization of production facilities, cutting fixed costs, and reforming its personnel system. For its fiscal year, expenditures will be about $1.2 billion (140 billion yen), $1.1 billion (130 billion yen) of which will be spent in electronics, which Sony expects to result in annual cost savings of about $632 million (75 billion yen) for fiscal year 2004.