Sony Selling Cell Chip to Toshiba
- Scribbled on September 16th, 2007 by Jonah Falcon
- Filed in Blu-Ray/HD-DVD, Industry News, Rumor Mill, Sony PlayStation 3
In some shocking news coming out of Reuters, Sony is negotiating with Toshiba to sell its Cell chip manufacturing facilities to Toshiba for $870M, and is indicative of serious Sony cash flow problems.
To secure a stable supply of chips for its game machines after the possible sale, Sony is considering to set up a joint venture with Toshiba to take over actual production activities at the manufacturing facilities, the sources said.
Sony, which is in the final year of its three-year turnaround plan under Chief Executive Howard Stringer, said in February it will cut back on future chip spending and may not produce next-generation microchips using 45-nanometre circuitry in-house.
You have to wonder, though - is it really wise to sell your chip assets to the head backer of the HD-DVD format?
September 21st, 2007 at 8:46 pm
[...] idea that Sony may be quietly exiting the console hardware business as Sega did, in light of Sony’s plans to sell Cell chip manufacturing to Toshiba. However the biggest nugget of information to take away from this post is that Sony is now reducing [...]
October 18th, 2007 at 12:34 pm
[...] - Reuters has announced that Sony has sold its Cell processing chip to Toshiba. This deal had been rumored about, but it’s now official. The electronics and entertainment conglomerate plans to sell to [...]