Sony Corp. is set to begin formal talks to buy a chip plant from Renesas Electronics Corp. to increase production of smartphone image sensors, sources said.
Sony plans to begin due diligence next week, and the companies may not reach a final agreement, the sources said, asking not to be identified because the discussions are private. The company is increasing output of the sensors, which help phones take high-quality photos, as companies such as Apple Inc. buy Sony's technology for use in their own devices.
Chief Executive Officer Kazuo Hirai is seeking to bolster profits as Sony struggles with falling demand for televisions and missteps with its Hollywood studio. While its smartphone business accounts for just 3.7 percent of global shipments, Sony has garnered almost a third of the $7.6 billion market for low-power sensors.