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Sony to slash chip spending
Written by Gizmo   
Friday, 16 February 2007 20:08
Sony Corp. will cut back on future chip spending and may not produce advanced chips used in its PlayStation 3 (PS3) in-house, a senior executive said on Tuesday, in a move aimed at driving the semiconductor unit's nascent earnings recovery.

Read the full story at Reuters:

Improving profitability in its chip division is important for the Tokyo-based electronics and entertainment conglomerate, which targets an operating margin of 5 percent in the business year from April, up from an estimated 0.7 percent a year earlier.

Sony Executive Deputy President Yutaka Nakagawa told reporters that investment in chips would come down significantly from the 460 billion yen ($3.8 billion) allocated over the three business years since April 2004.

Sony is already producing the cell chips, dubbed "supercomputer on a chip", using 90- and 65-nanometre circuitry for the PS3, and plans to move onto the 45-nanometre variety by 2009. A nanometre is one billionth of a meter.

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