Strengthening production capacity to increase the in-house sourcing of semiconductors,as the core of electronics products

    TOKYO, Japan, December 21st, 2004 - Sony Corporation today announces the expansion of Sony Semiconductor Kyushu Corporation's Kokubu Technology Center and Kumamoto Technology Center (hereafter Kokubu Tec. and Kumamoto Tec.). The purpose is to enhance the production environment of core semiconductors which are key in differentiating and adding value to electronics products. The construction of new production wings is targeted to start in May 2005, with an investment scale of approximately 60 Billion yen over 2005 and 2006.

    The investment announced today is intended to proactively produce semiconductors for integration into Sony electronics products; display related devices, such as the reflection-type LCD projection device, "SXRD" and the LCD driver, as well as imaging devices such as CCD and CMOS. This will further enhance the Sony Group's overall semiconductor related production environment. It will also contribute to the enhanced vertical integration of products and devices as well as improved competitiveness.

    In Kokubu Tec., approximately 10 Billion Yen* will be invested to construct a new production wing, leading to the expansion of clean-room area by 5,000 m2. This added production line will produce the LCD projection-use device "SXRD", and LCD driver ICs to be used in LCD TVs, where the market is very much expected to expand. Mass production is scheduled to start from Spring 2006. * Investment for the production equipment is not included.

    In Kumamoto Tec., approximately 50 Billion Yen will be invested to construct a new production wing and introduce new production equipment. The new wing is a 2-layer structure clean-room with a total potential surface area of 20,000 m2. The investment this time will result in the installation of 5,000m2 of clean-room. The investment will also be used to introduce image sensor production equipment, and operations in this new facility are targeted to start from Spring 2006. In addition to CCDs, whose characteristics are high-resolution and small size, CMOS image sensor with strengths such as low power consumption and multi-function, will be added as production items, targeting expanded business opportunities in the imaging device market. In addition, the introduction of the LCD process for 'SXRD' is also planned.