Sony and Toshiba agree chip deal

October 18th, 2007, 19:13 Posted By: Shrygue

via Games Industry

Following rumours last month that Sony would sell its processor chip manufacturing facilities to Toshiba, the company has announced that it will enter into a joint venture instead.

The agreement, which should be completed by the end of March according to a report by Bloomberg, will see the transfer of manufacturing facilities to Toshiba, while manufacturing will come under the control of the Sony-Toshiba joint venture.

Sale of the facilities to Toshiba is expected to raise JPY 100 billion (USD 858 million), and the Sony share price had climbed 0.6 per cent by the close of the Tokyo Stock Exchange.

The move also follows Sony's announcement earlier in the month about its partnership with Infineon Technologies on the production of DRAM chips.

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