Sony to Sell PS3 “Cell” Facility to Toshiba

Starting March 2008, Toshiba is the proud new owner of Sony’s microprocessor and graphic chip production facilities. Toshiba, Sony and Sony Computer Entertainment will set up a joint venture to run the Nagasaki “Cell” microprocessor output plant next April. The price hasn’t been set yet, but it’s likely to be over US $858 million. Previously, Sony said it planned to cut back on chip spending and possibly might not produce advanced 45-nanometer “Cell” chips. Under this new partnership, Toshiba and Sony will cooperate in producing 45-nm “Cell” chips. This is the last year of CEO Howard Stringer’s aggressive plan to cut non-core business. Sony spokesperson Daichi Yamafuji assures that gaming consoles are still one of Sony’s core businesses.

Cell Plants to be Sold [Reuters]