SAN FRANCISCO—Beleaguered Japanese consumer electronics giants Sony Corp. and Toshiba Corp. are expected to increase their spending on semiconductors over the next two years as they invest in a wide range of new products in an attempt to revitalize their businesses, according to market research firm IHS iSuppli.
Sony is expected to buy $8.4 billion worth of semiconductors next year, up 5 percent from 2012, according to an IHS semiconductor spending analysis report. IHS expects Sony to raise its chip spending again slightly in 2013.
Toshiba’s chip spending is expected to increase 2 percent to 6.1 billion in 2013, according to the report, which predicts Toshiba will increase chip buying by another 6.3 percent in 2014.
But while IHS expects Sony and Toshiba to increase their stakes in an effort to right their respective ships, the market research firm predicts that fellow Japanese OEMs Panasonic Corp. and Sharp Corp. will cut spending on chips in 2013. IHS does expect Panasonic to increase chip spending by 2.4 percent in 2014.
"All the Japanese consumer electronics OEMs are struggling financially—prompting them to take measures to cut costs in order to shore up their profits," said Myson Robles-Bruce, senior analyst for semiconductor spending and design activity at IHS, in a statement. "But even in these grim circumstances, Sony and Toshiba remain optimistic about the future, and are taking steps to invest in innovative products. This will cause their spending on semiconductors to rise in the coming years."