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Toshiba to Sell CELL Manufacturing Plant to Sony

Sony hopes to use Nagasaki plant to produce chips for cameras and smart phones.


NHK reports today that Toshiba is currently in negotiations to sell its Nagasaki semiconductor manufacturing plant to Sony. The plant is used to manufacture the CELL chips that are used in the PlayStation 3.

According to the NHK report, the CELL chip, which was jointly by IBM, Sony and Toshiba, has failed to meet Toshiba's initial expectations for demand outside of game machines. As a result, Toshiba hopes to get out of the production business for the chips.

At the same time, Sony hopes to purchase the plant and convert it to the production of chips for use in high definition digital cameras and smart phones, demand for which is expanding greatly.

NHK says that the two sides are expected to reach an agreement shortly.

UPDATE 14:12 -- Nikkei is reporting that the purchase price is expected to be 50 billion yen.

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