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Sony to sell PS3 chip fabs to Toshiba
Written by Daniel   
Thursday, 18 October 2007 11:28
Sony to sell PS3 chip fabs to Toshiba
ARS Technica
By Jon Stokes | Published: October 18, 2007 - 11:01AM CT

In a move that has been rumored since the time of Kutaragi's tenure as CEO, Sony has announced that it will sell a pair of its semiconductor fabrication facilities. These two fabs, one in Oita and another in Nagasaki, make the Cell processor and GPU for the Playstation 3, and their sale marks the end of Sony's days as an integrated device manufacturer (IDM).
Reuters is reporting rumors that the two fabs will go for $858 million, but neither of the parties have yet to announce dollar figures for the sale. The Nagasaki fab will be run by a new business set up jointly by Sony and Toshiba.

Sony has been considering getting out of semiconductor manufacturing for some time now. I personally know an investment banker whose bank was once asked to send representatives to a meeting with then-CEO Ken Kutaragi, in which Kutaragi tried to get a sense from the finance community of what Wall Street's reaction would be to Sony's selling its semi business. Sony's constant mulling of this decision over the years produced a string of rumors that would periodically bubble up in the press, but the company never pulled the trigger on the move until this week.
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