Tokyo (Japan) – Toshiba and Sony have signed a memorandum of understanding that outlines the creation of a new joint venture that will put Toshiba in control of the production of the Cell processor and the RSX graphics engine of the PS3.

According to the memorandum, a so far nameless new company will be producing the Cell CPU and the RSX chip. Toshiba will hold 60% of the joint venture, Sony 20% and SCEI 20%. Manufacturing will be transferred to a new plant from Sony’s Semiconductor Kyushu Corporation’s Nagasaki Technology Center (SKC) by the end of March 2008.

The new company will continue producing semiconductors on a 300 mm wafer line and use a 65nm production process. Toshiba and Sony said they will work together in developing future production processes, including a migration to 45 nm.

As part of the agreement, the two companies will phase out their existing joint venture, Oita TS Semiconductor Corporation (OTSS), which was established back in June 1999 and has been used to produce semiconductor products for the Playstation. Toshiba holds 51% of OTSS, Sony 49%.

IBM’s production of Cell processor is not being impacted by the agreement. IBM is manufacturing Cell processors at its East Fishkill plant in New York.

Isnt it funny

Oct 18, 2007 18:11     

Sony and Toshiba worked together on creating the brains of the PS3 and now they are on opposite end when its comes to HD video. Now if they will just work together and have ONE STANDARD for HD video.
Voodoo report abuse vote down vote up Votes: +0

Makes sense for now

Oct 18, 2007 18:45     

Well this will help Sony reduce the manufacturing overhead cost which will reduce the cost of goods sold for their income statement and thus improve their net income. And when and if they sell enough PS3 or find another use for the Cell, they can buy the facility back minus depreciation.
Ruibing report abuse vote down vote up Votes: +0