Sony Corporation plans to sell itâ€™s Western Japan-based Microchip plant to itâ€™s erstwhile rival Toshiba. This is a bit surprising as the two companies have been battling it out over the high definition disc market, which some were calling the â€œFormat Wars.â€ As you probably know, the format wars are over, and Sonyâ€™s Blu-Ray has won. But that was yesterdayâ€¦apparently the companies are good buddies again.
Sony, which is focusing on image sensor chips for digital cameras and pulling away from heavy investments for cutting-edge chip production equipment, said in October it would sell production facilities for making key microchips used in the PS3 to Toshiba, but the price has been unavailable.
The sale is part of a refocusing on Toshibaâ€™s Semiconductor joint venture (presumably with Sony) aimed at manufacturing high-performance cell chips as well as RSX graphics chips. Both processors are used in the Playstation 3 game console. They plan to start at the beginning of April.
Shares in Sony were up 2.8 percent at 5,150 yen in afternoon trade while Toshiba fell 2.8 percent to 801 yen. The Tokyo stock market’s electrical machinery index was down 2.1 percent.
Sony Blu-Ray Devices
Image Credit: Reuters