Sony Sensor Production Affected by Recent Earthquakes

[Canon Rumors Guy]

<em>Postponement of the Announcement of the Consolidated Results Forecast for the Fiscal Year Ending March 31, 2017 due to the Impact of the 2016 Kumamoto Earthquakes</em></p>
<p>Due to the earthquake of April 14, 2016 and subsequent earthquakes in the Kumamoto region, Sony Corporation (“Sony”) expects that it will be unable to formulate the forecast for its consolidated results for the fiscal year ending March 31, 2017 in the usual timeframe. Accordingly, Sony will postpone the announcement of the forecast when it announces the actual consolidated results for the fiscal year ended March 31, 2016, scheduled for April 28, 2016, and plans to announce the forecast in May 2016.</p>
<p>Operations at Sony Semiconductor Manufacturing Corporation’s Kumamoto Technology Center (located in Kikuchi Gun, Kumamoto Prefecture) were halted after the earthquakes and remain suspended. The extent of the damage caused by the earthquakes is being evaluated and preparations for the rehabilitation of the site are underway, with priority being placed on the safety of employees. Measures to minimize the impact on business operations are also under consideration.</p>
<p>The survey of damage to the Kumamoto Technology Center conducted so far has revealed damage to certain parts of the building, clean rooms and production equipment. The timeframe for resuming operations has yet to be determined. The Kumamoto Technology Center is the primary manufacturing site for image sensors for digital cameras and security cameras as well as for micro-display devices.</p>
<p>The impact of the earthquakes on Sony’s consolidated results continues to be evaluated. The suspension of operations at the Kumamoto Technology Center may have an adverse impact on Sony’s operating results, particularly in the Devices and Imaging Products & Solutions segments. In addition, the earthquakes have caused damage to the manufacturing facilities of certain third-party suppliers of components to Sony, the impact of which on Sony’s business operations is currently being evaluated.</p>
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[Mt Spokane Photography]

The issues will dribble out slowly. It seems to me to be a cultural thing. In the US, I'd be working 24/'7 to come up with answers in a few days, and have a plan to recover. I expect to continue to hear results of their investigation for months.

The simple facts are likely that the plant will be out for at least 6 months, possibly a year or more. Customers like Apple will have to go to a different supplier for the IPhone 7, and likely delay it, since the design is certainly frozen by now. Samsung may be in better shape to make their own sensors.