Mr. Krepil, what is the current situation at the Sony plant?
Axel Krepil: We have been informed that the damage to the Sony building and the production lines has been relatively minor. Apparently, only some internal utility infrastructure, such as power, water, and compressed air lines, was affected, and a few interior cladding elements became detached. The building itself does not appear to have sustained any structural damage. Compared to 2016 – exactly ten years ago – when a similarly powerful earthquake reportedly caused entire production machines to topple over and suffer significant damage, the impact this time has been considerably less severe.
That certainly sounds encouraging. How long will image sensor production be halted?
At the Sony Kumamoto Technology Center, where wafer fabrication takes place, partial production is expected to resume by the middle to the end of this week. Full production capacity is anticipated to be restored by mid-August.
What impact will this have on the availability and lead times of Sony image sensors?
The unplanned interruption in wafer fabrication could lead to somewhat longer lead times for certain products in the medium term. However, unlike in 2016, many Sony image sensors have for years been processed in the back-end manufacturing stage – including assembly and final testing – in Thailand. As a result, we do not expect any short-term delivery delays, since the intermediate inventory (the die bank) should be sufficiently stocked, ensuring that planned deliveries for the coming weeks remain secure.
Why are lead times for Sony image sensors already so long?
The Kumamoto factory is currently operating at 100% capacity and has reached its production limits. Demand significantly exceeds current manufacturing output. As a result, lead times today typically range from 20 to 28 weeks, depending on the product type, but only if these quantities have already been included in customers’ forecasts and production planning. Spot orders without prior forecasting are much more difficult to accommodate, and customers should expect lead times of around six months. Customers are therefore strongly advised to place orders well in advance and provide accurate long-term forecasts.
