Sony agrees to sell chip production lines to Toshiba
Sony Corp has agreed to sell to rival Toshiba Corp its production lines for high-performance computer chips, including the technology at the heart of the PlayStation 3.
By Agencies |
TOKYO: Sony Corp said on Thursday that it had agreed to sell to rival Toshiba Corp its production lines for high-performance computer chips, including the technology at the heart of the PlayStation 3.
The two companies will set up a joint venture to produce high-performance semiconductors and to operate the production lines in western Japan under the basic deal, which they hope to finalise by March next year. Sony said it hoped the move would generate further growth in the PlayStation business.
The electronics giant invested heavily in developing the Cell microprocessor for the PS3 and is now struggling to make a profit from the console in the face of fierce competition from Nintendo and its hit Wii.
The full financial terms were not disclosed although the companies said the joint venture would have a capitalisation of about 100 million yen ($858,000) and be owned 60 per cent by Toshiba and 40 per cent by the Sony group. The Nikkei business daily reported earlier Friday that deal was estimated to be worth nearly 100 billion yen.
The two companies will set up a joint venture to produce high-performance semiconductors and to operate the production lines in western Japan under the basic deal, which they hope to finalise by March next year. Sony said it hoped the move would generate further growth in the PlayStation business.
The electronics giant invested heavily in developing the Cell microprocessor for the PS3 and is now struggling to make a profit from the console in the face of fierce competition from Nintendo and its hit Wii.
The full financial terms were not disclosed although the companies said the joint venture would have a capitalisation of about 100 million yen ($858,000) and be owned 60 per cent by Toshiba and 40 per cent by the Sony group. The Nikkei business daily reported earlier Friday that deal was estimated to be worth nearly 100 billion yen.
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