Sony Group has started manufacturing at a newly built semiconductor plant in Thailand, as stated by the company on Thursday.
This will increase the production of automotive image sensors, which are in high demand.
A new factory was built on the existing site of a company in Pathum Thani, Thailand, costing 10 billion yen ($66 million). This factory, which started operating in February, boosted production by 70% and is expected to create 2,000 new jobs by 2026, including engineers making up 20% of the staff. Sony Group also set aside extra space in this facility for future expansion.
Terushi Shimizu, president of Sony Semiconductor Solutions, said they aim to make competitive products such as car image sensors and expect growth in the medium to long term.
Image sensor back-end operations will be managed by the fab. They'll be processed in Japan to create circuits on wafers, then sent to Thailand for cutting, packaging, and finishing. The primary output of the plant will be image sensors for sophisticated driver-assistance systems that can identify obstacles and pedestrians.
Improvements in autonomous driving should lead to a rise in the market for high-performance image sensors from Sony Group. By 2025, the company aims to increase its market share to 39%, up 14% from now. The factory will also produce a new type of laser diode for high-capacity hard drives, which is becoming popular in data centers. Seagate Technology, a data storage business in the United States, will receive the diodes.
Prime Minister Srettha Thavisin has announced plans to increase the minimum wage, leading to an anticipated rise in labor costs across Thailand. Takeshi Matsuda, managing director of Sony Device Technology (Thailand), said there are still considerable cost savings, including labor costs, despite the rise in minimum wage. They plan to recruit engineers by collaborating with local Thai universities and other partners.
