As a follow up to the previous report regarding the planned sale of Sony’s chipmaking unit – the Japanese the company said Tuesday that it is still looking at ways to improve its chip operations and has reached no decision on whether to sell it; essentially denying Japanese media reports that it has struck a deal with Toshiba.
Toshiba Corp. spokesman Keisuke Omori also said no deal has been decided.
Japan’s top business daily, The Nikkei, reported Saturday that Sony has decided to sell its advanced computer chip production operations to Toshiba, which partnered with Sony and IBM Corp. in developing the “Cell” microprocessor. Cell powers Sony’s PlayStation 3 video game console, some IBM servers and specialized, graphics-intensive hardware, but it has yet to emerge as a mainstream processor.
The speculation about the future of Sony’s chip operations comes amid a restructuring at Sony and intensifying competition among the world’s computer chip makers. In general, prices have been dropping not only on lower-end chips but all gadgets, making it harder for manufacturers to maintain profits.
“There’s probably two or three things going on in concert,” said Charles King, an analyst with Pund-IT Research. “It’s very expensive not just to produce or develop but also to maintain a hardware platform. It’s not something that ends when the finished chip comes out.”
Sony shares fell 2.2 percent amid market expectations that the company will have to shoulder losses in selling its chip-making facilities to Toshiba. Toshiba shares dipped 0.6 percent.
Sony has been saying for months it’s exploring ways to streamline its chip business as it focuses on home entertainment devices. “But nothing concrete has been decided,” Sony spokesman Tomio Takizawa said.
In the weekend report, The Nikkei said Sony will sell its chip operations to Toshiba and then form a joint venture with Toshiba to use its products. IBM, which also produces Cell chips in East Fishkill, N.Y. — at a facility that got a $325 million investment from Sony in 2004 — declined to comment.
News source: Associated Press