Sony Is To Build Chip Factory in Thailand

Recently, according to foreign media reports, global image sensor manufacturer Sony Group will build a new semiconductor factory in Thailand.

Although semiconductor demand is experiencing a partial decline, demand for automotive semiconductors remains strong as the digitization of vehicles accelerates. According to reports, Sony is controlling production costs by dispersing its production bases around the world and building a semiconductor supply chain that can respond to emergencies.

Sony plans to invest about 10 billion yen to build a new building at its production site in central Thailand. Work is already underway, and the plant will start operations in the fiscal year ending in March 2025. The new factory is primarily responsible for making an image sensor that partially automated cars can use to identify pedestrians and obstacles. After the completion of the factory, Sony's production scale in Thailand will increase by 70%, in addition, the company will employ 2,000 employees to work in the factory.

Sony plans to complete the front-end process related to wafers in Japan, and then hand over the back-end process to Thailand, where labor costs are relatively low, and then export the finished products to countries around the world. Sony currently handles most of the front-end and back-end processes for automotive sensors at its Japanese factories, and now plans to focus its Japanese efforts on front-end processing and let its Thailand operations take over the rest.