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| Sony is accelerating its entry into the automotive business |
Sony plans to supply imaging sensors to 15 of the world's 20 largest automakers by 2025.
This confirms the company's ambitions in the field of electric cars and autonomous driving as it seeks to diversify beyond the scope of phones.
The Japanese conglomerate has announced plans to accelerate its entry into the auto industry in 2020, unveiling a prototype of an electric vehicle called the Vision-S.
This year, the company also launched an electric vehicle division and announced a joint venture with automaker Honda.
Sony said it now aims to provide the sensors needed for electric and self-driving cars. In addition to producing spare parts for smartphone cameras for Apple, Google and Samsung, the company also wants to break new ground.
"By fiscal year 2025, we expect to have an automotive imaging sensor business with 75% of the world's 20 largest automakers," said Sony's head of imaging and sensing.
He added that the 20 automakers could produce about 80% of the world's cars within three years.
Sony plans to spend about $7 billion developing image sensors between 2021 and 2023, nearly three times what it spent between 2015 and 2017.
One challenge is keeping chips safe as the pandemic has shortened supply chains and reduced companies' inventories.
The Japanese company has invested in a joint venture with Taiwanese semiconductor manufacturer TSMC to build a $7 billion chip factory in Japan.
He hopes to deepen cooperation to ensure a stable supply of logic semiconductors used to control the operation of electronic devices.
The company is making progress after a slow start. Sony initially struggled in the auto sector, but now it's catching up. There were capacity issues, but they were resolved thanks to the partnership with TSMC.
Sony wants sensors for electric cars
Sony also informed investors that it is ramping up production on the PlayStation 5 platform and shifting its focus to mobile and computer games.
The PlayStation 5 platform will be launched in late 2020. The company saw lower sales the following year due to a shortage of spare parts due to the pandemic.
Analysts expect the company to close the gap in its third year and lead sales of the PlayStation 4 platform in 2024.
"We expect PlayStation 5 production to increase significantly this year, allowing us to bridge the gap with PlayStation 4," said Jim Ryan, Sony's head of games.
He added that the company plans to significantly increase the platform's production, which will raise it to production levels never seen before.
But Ryan said the issue of supply is his top priority. He noted the risks posed by China's coronavirus lockdown and Russia's invasion of Ukraine.
The company is still dependent on economic growth in China and hopes that PlayStation 5 sales will be fueled in part by unprecedented demand in the world's second largest economy.
"Platforms are expected to account for more than two-thirds of issuance this year," Ryan said. However, Sony plans to release nearly half of its new games on mobile or PC by 2025.
Given the company's low profile on these platforms, Sony's foray into mobile and PC games is a huge step forward.