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Thursday 18 October 2007

Sony, Toshiba to create Cell-focused JV, transfer PS3 fab

Ann Steffora Mutschler, senior editor, Electronic News

Toshiba Corp., Sony Corp. and Sony Computer Entertainment Inc. reported that they intend to create a semiconductor joint venture to produce high-performance chips including ones based on the ‘Cell Broadband Engine’ (Cell/B.E.) and the ‘RSX’ graphics engine.

The companies also said Sony’s 300-mm wafer fab from Sony Semiconductor Kyushu Corp.’s Nagasaki Technology Center (SKC)’s Fab 2 will be transferred to Toshiba by the end of March 2008. Following the transfer, production on the line will be operated by the joint venture, the companies noted.

Toshiba expects the collaboration to allow it to expand its system LSI business by increasing order volume and securing regular orders of high-performance semiconductors for PlayStation, while Sony Group will aim for the further growth of the PlayStation business by achieving process migration of high-performance semiconductors.

The companies reminded that they already have a solid partnership in the development and production of high-performance semiconductors for game consoles, including the Sony Playstation 3, with this new joint venture building on their existing relationship by utilising the 300-mm wafer fab facilities that Toshiba will acquire from Sony, where most production will focus on chip manufactured at the 65-nm process node.

Further, the Japanese semiconductor giants said they will jointly migrate to the 45-nm process node. The joint venture’s name is still to be determined, but an establishment date has been planned for April 1, 2008, with a capitalisation of approximately 100 million yen. Toshiba will own 60%, Sony will hold 20%, and SCEI will own the other 20%.

A chairman and CEO will be appointed by Toshiba, while a president and COO will be appointed by Sony. Concurrently, the companies also agreed to transfer to Toshiba the assets of Sony of Oita TS Semiconductor Corporation (OTSS) joint venture between Toshiba and Sony.

Located within Toshiba’s Oita Operations semiconductor plant, OTSS was established to manufacture semiconductors for Playstation2 in 1999. The companies said this transfer will occur “as soon as possible before the end of March 2008.”

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