Sony 2003 Annual Report Download - page 15

Sony Corporation Annual Report 2003 13
their phones, SEMC is confident that it can secure a
strong market position through the introduction of
attractive products and applications.
Mobile products harbor considerable potential in
terms of both their market size and grow th rates, and
Sony is extremely skilled w hen it comes to them. We will
continue to create captivating mobile products that are
distinct to Sony. We will leverage our advantage as a
producer of the key devices that are critical to the com-
petitiveness of mobile products in order to vertically
integrate devices and end-use products. This will enable
us to make our products even more appealing and add
still more value.
Initiative 4: Become even stronger in the semicon-
ductor field
In the semiconductor business, the Sony Group has
been making investments and bolstering production
capacity to support the Electronics and Game segments.
As mentioned earlier, we plan to make capital expendi-
tures in semiconductors totaling approximately 500
billion yen during the three-year period beginning with
the fiscal year ending March 31, 2004.
To meet the growing demand for imaging sensors in
digital still cameras and camera-equipped mobile phones,
we are planning to begin production of imaging sensors
at the semiconductor fabrication facilities owned by
Sony Computer Entertainment (SCE). SCE currently pro-
duces chips for the PS2 at these facilities using 180 to
150 nanometer process technology. By the summer of
2003, our monthly output of CCDs will exceed 7 million
units, helping us to obtain the top share in the market
for imaging devices.
At the production facilities owned by SCE where we
have begun introduction of 90 nanometer process
technology, w e plan not only to produce semiconduc-
tors that combine the EmotionEngine and Graphics
Synthesizer into one chip and other semiconductors for
PSX, but also semiconductor devices for electronics
products. To prepare for the production of the next-
generation microprocessor called Cell and other next-
generation microprocessors, we are currently installing
65 nanometer process technology for use on 300mm
wafers. Through these activities, the advanced semi-
conductor process technology used to produce high-
performance chips for the PS2 is beginning to be used
by the Electronics segment as w ell.
Through these four initiatives w e w ill gather together
the collective strength of the Sony Group to create
new markets in the broadband era and bring to life a
pow erful force for growth known as the Ubiquitous
“ Value” Network.
Sony’s Entertainment Companies: Focusing on
Profitability and Emerging Opportunities
Sony’s efforts to become a 21st Century enterprise extend
beyond Electronics and Game to encompass our content
businesses as well. Sony’s entertainment companies are
focused both on the profitability of their core businesses
and on pursuing emerging opportunities, particularly in
new avenues of content distribution. To bolster profit-
ability, we have implemented Project USA, an ongoing
restructuring of our entertainment and U.S. electronics
businesses, gaining substantial savings and efficiencies
through implementation of overhead reductions, shared
services and consolidated buying opportunities. Shared
services also strengthen collaboration across our divisions.
This enables Sony to leverage its unique position and
expertise in both devices and content to create new
digital consumer offerings.
Our entertainment companies are utilizing their
content libraries in fresh and exciting ways to develop
new business opportunities. New revenue sources at
Sony Pictures Entertainment (SPE) include selling down-
loads of television soap operas through our SoapCity
on-demand broadband service; publishing online games
such as Charlie’s Angels: Angel X, based on our motion