Sony to dominate the image sensor market; acquires Toshiba’s sensor business

Sony has signed a Memorandum of Understanding with Toshiba to restructure its storage, battery and semiconductor businesses, which is key to the success of its image sensor operations.

As part of the deal, Toshiba will sell its image sensor manufacturing plant in Oita to Sony within the fiscal year ending March 31, 2016. Upon the completion of the transfer, Toshiba’s fabrication facilities, equipment, as well as 1,100 employees will be under Sony.

In a media statement, Sony announced it plans to operate as “a production facility” of Sony Semiconductor Corporation , a fully owned subsidiary of Sony, that will take on the entire sensor business. The primary focus will be producing CMOS (Complementary Metal-oxide Semiconductor) imaging sensors for cameras.

“Negotiations between the parties are proceeding with a view to Toshiba outsourcing production of the semiconductor products Toshiba currently manufactures on its 300mm wafer production line to Sony Semiconductor Corporation following the transfer”, said Sony.

Through this acquisition, Toshiba aims to overhaul its unprofitable semiconductor businesses following a $1.3 billion accounting scandal. In July, President and CEO Hisao Tanaka stepped down after investigations revealed misreported and exaggerated earnings.

Sony also supplies sensors to many smartphone manufacturers, including Apple, Google and Xiaomi. Its sensors are also used by Nikon for its high-end DSLR cameras. Almost all of Nikon’s interchangeable camera lens units have Sony’s image sensor, reports The Verge.

On the other hand, Toshiba will fully concentrate on aspects “it has a high technological advantage” and aims to “improve the profitability of its system LSI business”. According to Reuters , the 20 billion yen (US$166.15 million or AU$243.53 million) deal will help Sony further expand its reach in the CMOS market, 40 percent of which is already controlled by Sony.

“This acquisition will enable Sony to increase its production capabilities in the area of CMOS image sensors, where further market growth is anticipated,” said Sony.

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