http://online.wsj.com/article/SB118982504239228518.html?mod=yahoo_hs&ru=yahoo
Sony Considers Selling Production Facility
By YUKARI IWATANI KANE
September 14, 2007 11:20 p.m.
TOKYO -- Sony Corp. is considering selling the production facility where it makes the advanced processor used in its PlayStation 3 videogame console, as part of its ongoing effort to focus more on its core electronics business.
People familiar with the situation said the company was in discussions with Toshiba Corp., Japan's largest chip manufacturer, which had worked with Sony and International Business Machines Corp. to develop the so-called Cell chip. They said a deal could be reached by the end of the year.
Such a move would fit into Sony's overall strategy to focus on products in its mainstay consumer electronics business and make chips only in areas where it has a competitive edge, such as the specialized chips used in digital cameras.
Sony invested 200 billion yen ($1.7 billion) a few years ago to develop the Cell processor, which is significantly more powerful than the chips typically used in PCs. But it would need to make a significant investment again to make the next-generation version. Toshiba and IBM both have the capability to make the same chips.
For Toshiba, the deal would help beef up its processor business, which is not as strong as its flash memory business.
