© pichetw dreamstime.com Business | May 04, 2016
Sony: damage investigation is complete
The Japanese technology company has now completed its damage assessment following the Kumamoto earthquakes.
Due to the earthquake of April 14, 2016 and the following quakes in the Kumamoto region, Sony's primary manufacturing site of image sensors for digital cameras and security cameras as well as micro-display devices, were halted and currently remain suspended. The company has now completed the damage survey and evaluation and informed about the current status of operations for the Kumamoto Technology Center. Sony has confirmed that damage to the building itself to be be primarily to the upper layer of the building, and reinforcement work will be carried out in this area. The clean rooms used for wafer processing and manufacturing equipment, both located on the lower layer of the building have not been significantly damaged, and preparations are now underway to resume production. Manufacturing operations are targeted to resume around the end of May 2016, the company informs via a press statement. Regarding back-end processes, such as assembly and measurement, as well as processing operations for components such as camera modules, which are carried out on the upper layer of the building, Sony has confirmed that there is damage to the clean rooms, manufacturing equipment and other equipment. Further analysis of the extent of this damage is currently underway. Damage to finished product inventory such as image sensors at Kumamoto Technology Center is limited, and shipments of these products have already resumed. The status of semi-finished and uncompleted products is currently being confirmed. The impact of the earthquakes on Sony Corporation's consolidated results however, continues to be evaluated. In the Devices segment, there is expected to be direct physical damage to Kumamoto Technology Center. Sony also adds that due to the suspension of manufacturing operations at the center and potential disruption to the supply of components to Sony from suppliers that also have manufacturing facilities in the region – it is possible that business operations within the Mobile Communications, Game & Network Services and Home Entertainment & Sound segments also may be affected.
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