Sony and Toshiba to buy more chips next year
Sony and Toshiba could buck the trend of decline in the Japanese market and increase their semiconductor spending over the next two years, says market analyst IHS.
Sony next year is expected to purchase $8.4bn worth of semiconductors, up nearly 5% from $8bn in 2012, according to an IHS Semiconductor Spend Analysis report from IHS.
Toshiba’s spending is predicted to increase 2% to $6.1bn in 2013.
Toshiba’s spending will rise by another 6.3% in 2014, reaching $6.5bn, said IHS.
“All the Japanese consumer electronics OEMs are struggling financially—prompting them to take measures to cut costs in order to shore up their profits,” said Myson Robles-Bruce, senior analyst for semiconductor spending and design activity at IHS.
In contrast, spending at the other major Japanese consumer electronics OEMs, Panasonic and Sharp, will decline in 2013 and 2014—with Panasonic enjoying a minor rebound of 2.4% in 2014.
“But even in these grim circumstances, Sony and Toshiba remain optimistic about the future, and are taking steps to invest in innovative products. This will cause their spending on semiconductors to rise in the coming years,” said Robles-Bruce.
According to the report, the Japanese consumer electronics manufacturers have been negatively impacted by a range of different factors this year, including economic slowdown in key markets of the world, lower demand plaguing certain product segments, and increasingly difficult competition from South Korean and Chinese rivals.
Panasonic, Sony, Toshiba and Sharp will all suffer losses this year.
As a group, the four companies will see their revenue decline by nearly 7% in 2012 compared to 2011, said IHS.
“The Japanese consumer electronics companies face a changed marketplace, due to the rising influence of Apple and other competitors that have redefined some of the product segments or else simply just taken away share in key areas,” said Robles-Bruce.