Despite rumors, Sony is not working on an in-house chip

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Sony Corporation President and CEO Kazuo Hirai has denied rumors that the company was working on an in-house chip to replace the third-party chips it has used thus far. The statement was made to Asian publication PConline and first reported by Gforgames. Kazuo also took the opportunity to reiterate that the electronic giant has no plans to sell off its mobile division. This had likewise previously been dismissed by the general manager of Sony Mobile Taiwan.

In contradiction to the rumor mill, Sony plans to increase profits by restructuring its business. Judging from Kazuo’s response, Sony seems intent on doing this by creating products tailored to specific countries and regions. Kazuo asserts that the reform will progress at a smooth pace.

When asked by the PConline to comment on the possibility of a System-on-Chip (SoC), Kazuo denied that any such plan is circulating at Sony HQ. While this may not come as a huge surprise, it would make sense for manufacturers besides Samsung to increase the manufacturing of their own components. They would not have to rely on external companies, eliminating potential issues in communication with third parties. In-house production could also allow for custom hardware solutions not possible via third-parties, due to restrictions in their own manufacturing lineup.

However, Sony is likely not too keen on investing even more into its mobile division. It would have to bet even more money on one of its weakest assets. This would not be a wise business move, and it’s probably one of the main reasons the company has been rumored to sell off its mobile division.

Sony Mobile Communication was the sole company division to report a loss for Q3 2015, during which it sustained an operating loss of $172 million off of a total of $2.33 billion in revenue. According to Sony, it has decided “not to pursue scale in order to improve profitability.”

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