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Sony to Sell Chip Operations to Toshiba

17 Sep, 2007 By: Chris Tribbey

They're at odds over the successor of DVD, but Japanese media recently reported Toshiba and Sony appeared to have reached an agreement on another front.

The Associated Press reported that a story out of the Nikkei, Japan's most recognized business newspaper, said Sony Corp. will sell its Cell microprocessor and chip operations to Toshiba Corp. and start a joint venture to use the Cell manufacturing lines to produce system chips.

However on Sept. 18, Sony denied it had made any such deal with Toshiba, according to the AP, and a Toshiba spokesman confirmed that no deal had been reached.

The previous report had stated Sony would stop making the chips, which are used in PlayStation 3s and camcorders, and focus instead on audiovisual equipment. Sony, which co-developed the Cell microprocessor with Toshiba and IBM Corp., will sell the operation for $870 million, according to the report.

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