Sony eyes China chip plant

The factory might make chips for digital cameras

The Japanese consumer electronics giant Sony has said it might build a semiconductor assembly plant in China.

Considering the growth potential of the Chinese market, China is a very attractive location to shift our production facilities

Sony spokeswoman

The plant would make computer chips for the fast-growing Chinese market.

It is believed the plant would assemble chips to be used for digital cameras and for the PlayStation 2 games console.

"Considering the growth potential of the Chinese market, China is a very attractive location to shift our production facilities," a spokeswoman said.

Sources close to the company suggested Sony might invest about 10bn yen (£54m; $80m) in the plant.

Slashing costs

Sony said a local facility would help it control expenses.

"The global market is changing so fast, and cost reduction is very important," said a company spokeswoman.

Japanese press reports over the weekend suggested that Sony would build the factory in Wuxi in the Jiangsu province where the company already produces its Vaio laptop computers.

The Sony spokeswoman said it had not yet decided on a location.

"We are considering various possibilities from the view point of reducing our cost," she said.