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Sony to sell its Cell microchip facilities

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According to reports by the Financial Times and other services, Sony Corporation plans to terminate production of state-of-the-art computer microchips.
According to reports by the Financial Times and other services, Sony Corporation plans to terminate production of state-of-the-art computer microchips. This follows the low demand for its Cell microprocessor, the most expensive component used in Sony's PlayStation 3 games console and other high-end products.

Sony is in talks to sell the fabrication facilities for its large-scale integrated (LSI) semiconductors to Toshiba Corporation. Their decision underscores the difficulties electronics manufacturers face assembling everything on their own, from core components to the final products.

Sony concluded that it would not be able to recoup its huge investment in the Cell over the last three years, as its applications are mostly limited to videogame consoles. Sales of the PlayStation 3 have remained sluggish due to the popularity of the Nintendo Wii.

If the sale, which is estimated to be worth about 100 billion yen, is finalised, a joint venture is expected to be formed, borrowing facilities from Toshiba, continuing production of the Cell and supplying them to Sony, who plan to invest the proceeds from the sale in audiovisual equipment operations.
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