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Recent Export Restrictions To China Have Little Of An Impact On The Sony Chip Unit

Recent Export Restrictions To China Have Little Of An Impact On The Sony Chip Unit
According to Sony Semiconductor Solutions Chief Executive Terushi Shimizu, chip export curbs to China by the United States, Japan, and the Netherlands will have a limited impact on Sony Group Corp's semiconductor division.
Sony is the world's largest manufacturer of image sensors, which are widely used in smartphones and automobiles. Samsung Electronics Co Ltd of South Korea is one of its competitors.
Shipments of Sony's security camera-related products may be impacted by US export curbs implemented in October, according to Shimizu, who added that the negative impact on sales will likely exceed one billion yen ($7.47 million), but will be less than ten billion yen, or less than 1% of the unit's total revenue.
"It will only be a tiny bit."
The chip division anticipates total sales of 1.42 trillion yen for the fiscal year ending March 31, 2023.
Shimizu believes the company's microchip operations will be unaffected by the United States, Japan, and the Netherlands' January agreement to limit exports to China because the division does not typically handle cutting-edge chips.
The chip unit's CEO added that global mobile phone demand will likely begin to recover in the second half of 2023.
"We are a maker of sensors ... I believe demand for those finished products will be making a gradual recovery, although there are substantial inventories as well," Shimizu said.
According to research firm IDC, worldwide smartphone shipments decreased 18.3% year over year to 300 million units in the months of October and December.

Christopher J. Mitchell

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