What They Say
An executive, Kimio Maki, from Sony has said to the FT that the firm is automating its TV production facility in Malaysia to cut costs by up to 70% in 2023 compared to 2018. As well as robotics, the firm plans to use AI and digitalisation in sales and manufacturing to manage production and supply. The technology should also reduce defects.
What We Think
I remember years ago talking to a TV company then based in Germany about labour costs in manufacture. He pointed out that if the labour costs were just $10 or $15, it didn’t make a big difference where it happened. However, that company dropped out of the business, so I guess it must have cost a lot more!
Sony has been using automation in its PlayStation factory for some time and that has helped it to generate good profits in that business.
Sony has done a good job in turning the business around from being a drain on the whole company for many years. As DSCC has pointed out, the margin in the business is small, but the capital employed is relatively low, so there is a good opportunity for a good return on capital.
Maki was previously in the camera business of Sony but took over the CE side at the end of last year.(BR)
A robot arm grabs PlayStation 4 units from the assembly line and places them on a platform for testing. (Photo by Kento Awashima)
