Sony, Toshiba to create Cell-focused JV, transfer PS3 fab

By Ann Steffora Mutschler, Senior Editor -- Electronic News, 10/18/2007

Toshiba Corp., Sony Corp. and Sony Computer Entertainment Inc. (SCEI) reported today that they intend to create a semiconductor joint venture to produce high-performance chips including ones based on the ‘Cell Broadband Engine’ (Cell/B.E.) and the ‘RSX’ graphics engine, confirming reports last month. The companies also said Sony’s 300-mm wafer fab from Sony Semiconductor Kyushu Corp.’s Nagasaki Technology Center (SKC)’s Fab 2 will be transferred to Toshiba by the end of March 2008.

Following the transfer, production on the line will be operated by the joint venture, the companies noted.

Toshiba expects the collaboration to allow it to expand its system LSI business by increasing order volume and securing regular orders of high-performance semiconductors for PlayStation, while Sony Group will aim for the further growth of the PlayStation business by achieving process migration of high-performance semiconductors.

The companies reminded that they already have a solid partnership in the development and production of high-performance semiconductors for game consoles, including the Sony Playstation 3, with this new joint venture building on their existing relationship by utilizing the 300-mm wafer fab facilities that Toshiba will acquire from Sony, where most production will focus on chip manufactured at the 65-nm process node.

Further, the Japanese semiconductor giants said they will jointly migrate to the 45-nm process node.

The joint venture’s name is still to be determined, but an establishment date has been planned for April 1, 2008, with a capitalization of approximately (100 million yen).Toshiba will own 60 percent, Sony will hold 20 percent, and SCEI will own the other 20 percent.

A chairman and CEO will be appointed by Toshiba, while a president and COO will be appointed by Sony.

Concurrently, the companies also agreed to transfer to Toshiba the assets of Sony of Oita TS Semiconductor Corporation (OTSS) joint venture between Toshiba and Sony.

Located within Toshiba’s Oita Operations semiconductor plant, OTSS was established to manufacture semiconductors for Playstation2 in 1999. The companies said this transfer will occur “as soon as possible before the end of March 2008.”

In other Sony Playstation news, Sony Computer Entertainment America Inc. (SCEA) today announced it will now introduce its 40GB model of its Playstation3 (PS3) computer entertainment system on November 2, instead of November 11 as originally announced.

The 40GB PS3 model comes bundled with the Spider-Man 3 Blu-ray Disc (BD) from Sony Pictures Home Entertainment, and will be available in North America for a suggested retail price of $399. Effective immediately, the 80GB PS3 model, currently on the market, will be available in North America for $499, $100 below the original launch price.

The PS3 contains a Blu-ray drive, HDMI output, integrated Wi-Fi connection, Cell Broadband Engine and a built-in hard-drive.

Further, reflecting what Sony says is the availability of a more extensive line-up of PS3 specific titles, the 40GB PS3 will not play PlayStation 2 titles; consumers looking for backwards compatibility can find limited PlayStation 2 backwards compatibility on the 80GB PS3.