Sony has finally sealed the deal with it’s rival Toshiba over the chip manufacturing plant. The manufacturing plant located in Western Japan (Nagasaki), will be handed over to Toshiba soon enough. The production facility makes graphics chips for the Playstation 3 game console.
The plant seems to have become a liability instead of an asset. By selling the plant, Sony can get rid of the expensive semiconductor products. From now on the company will concentrate more on products like sensor chips used in digital cams and camcorders.
The estimated value of the manufacturing plant is hundred billion yen ($856 million). This is the second time that Sony is considering getting rid of it’s plant. According to original plans, Sony was supposed to produce next gen. microchips using 45 nanometer circuitry. (A nanometer is one billionth of a meter). But, I guess that’s not to happen anymore.
As of now, Sony is in it’s three year turn around plan. The company will cut back on it’s expensive chip manufacturing plans. As for Toshiba, the company spokesperson declined to comment further on this deal. Many in the business world consider this step to be very imperative. With this deal, two rivals will sort of unite!
Image Credit:BBC
