Why Did Sony Group's Stock Plunge 2.59%? CIS Market Challenges

On June 23, 2025, Sony Group's stock experienced a 2.59% drop in pre-market trading, reflecting the challenges faced by the company in the competitive CIS market.

Sony Group's recent financial performance has been impacted by several factors. The company's 2024 fiscal year report revealed that its main clients' sales did not meet expectations, coupled with intensified competition from high-end CIS manufacturers in China. This has led to a stagnation in Sony's market share, delaying its goal of achieving a 60% market share by 2025. Despite these setbacks, Sony's Image & Sensing Solutions (I&SS) division reported a 12% increase in sales and a 35% increase in operating profit, maintaining a 53% market share in the CIS market.

In response to these challenges, Sony has been actively expanding its production capacity. The company is building new production lines in Thailand and collaborating with JASM, a joint venture with Taiwan Semiconductor Manufacturing Company (TSMC), in Kumamoto, Japan. Additionally, Sony has acquired land to construct new factories, aiming to strengthen its market position.

Sony's strategic focus includes enhancing its technological capabilities, market positioning, manufacturing processes, strategic partnerships, and investment priorities. The company aims to achieve a 9% compound annual growth rate (CAGR) in its CIS business from 2024 to 2030. Sony's CFO, Kazuo Hirai, emphasized the company's commitment to achieving a 60% market share, despite the delay in its target.

Sony's long-term business strategy involves prioritizing mobile image sensors as the growth driver, while industrial and social infrastructure cameras, and automotive sensors are considered strategic business areas. The company is also investing in advanced manufacturing technologies, such as triple-layer stacking, to improve sensor performance and efficiency.