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Speaking of semiconductor overcapacity, it seems at least one major consumer electronics firm is starting to get the picture. As the AP reports:

Sony to Reduce Semiconductor Investments

Sony Corp. (NYSE:SNE) plans to cut capital expenditures at its semiconductor operations by a “large amount,” a company executive said Tuesday, weeks after the electronics giant reported a drop in profits for the latest quarter. The Tokyo-based company’s capital expenditures in its semiconductor business will be much less than the 460 billion yen (US$3.79 billion; euro2.93 billion) it spent over the last three fiscal years, said Executive Deputy President Yutaka Nakagawa, who heads the company’s semiconductor and component device business.

Sony also indicated that their next generation chips (when production shifts to 45 nanometer geometries) may be produced at foundries rather than company-owned fabs. Given that the foundries have space to fill, doing so would make tons of sense.

Source: Sony Backs Away From the Semis