Sony, Toshiba to buy more chips, says IHS

Sony, Toshiba to buy more chips, says IHS

LONDON – Japan's consumer electronics giants have been hit hard in 2012 but Sony and Toshiba are two companies that look set to try an innovate their way out of trouble in 2013, according to market research firm IHS.

Companies such as Panasonic, Sharp, Sony and Toshiba have been hit by multiple challenges including: economic slowdown in key markets of the world, lower demand plaguing certain product segments, and competition from South Korean and Chinese rivals. According to the latest financial forecasts, Panasonic, Sony, Toshiba and Sharp will all suffer losses this year and as a group, the four companies will see their revenue decline by nearly 7 percent in 2012 compared to 2011.

Nonetheless Sony Corp. and Toshiba Corp. are expected to increase chip purchasing over the next two years. Sony is expected to purchase $8.4 billion worth of semiconductors, up nearly 5 percent from $8.0 billion in 2012. Toshiba's spending will increase 2.0 percent to $6.1 billion in 2013, up from $6.0 billion in 2012. Toshiba’s spending will surge by another 6.3 percent in 2014 reaching $6.5 billion, IHS said.

In contrast, spending at the other major Japanese consumer electronics OEMs, Panasonic and Sharp, will decline in 2013 — with Panasonic enjoying a minor rebound of 2.4 percent in 2014.

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 Myson Robles-Bruce, senior analyst for semiconductor spending and design activity at IHS, in a statement.

IHS predicts Sony will bounce back with 3.7 percent revenue growth in 2013. However, Toshiba will suffer another 1 percent decline. Declines in 2013 revenue are expected at Panasonic and Sharp as well.


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TAG:IHS Panasonic Sharp Sony Toshiba semiconductor consumer electronics