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The Cell/B.E. as it sits inside the PlayStation 3  (Source: DailyTech)
Sony could be looking to pass the responsibility of chip making to Toshiba

The production plants behind the CPU of the PlayStation 3 are owned by Sony, which is expected, but soon they may be sold off to another Japanese electronics company. 

However, Sony the company may be taking steps to to sell its Cell Broadband Engine and other advanced chip production lines to Toshiba. Japanese-based Nikkei reports that the operations will be sold for around $870 million sometime next year.

Sony’s sale of its major chip plant may be part of Sir Howard Stringer’s plan to revitalize one of Japan’s most respected electronics companies. By ridding itself of the responsibilities of producing chips, the company may be able to better focus on what was once its core business – making audio and visual consumer electronics. 

Toshiba would likely view the acquisition of the new chip facilities as an opportunity for it to gain additional footing against its chip-making competitors, such as Intel and Samsung.

Toshiba is quickly becomign Japan's leading semiconductor expert.  With experience in everything from flash memory to high-end displays, taking the reins on Sony's Cell interests fits well with the company's existing portfolio.

Even after the sale of the plant, should it take place, Sony would likely be the main subcontrator of the facilities. Toshiba would hold the majority stake in the new operation, but Sony and its PlayStation arm would likely retain some form of control over chip production.



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Small typo
By MatthewAC on 9/18/2007 12:12:25 PM , Rating: 2
"Toshiba is quickly becomign"




RE: Small typo
By SunAngel on 9/18/07, Rating: -1
RE: Small typo
By TomZ on 9/18/2007 12:33:21 PM , Rating: 2
That's quite funny, but what would be better is if DT writers would use spellcheckers and/or have their articles proofread. That is the only way to really eliminate most of these types of comments. As long as there are typos, there will be someone to make a comment about them, plus someone to make a comment about the comment, plus someone to make a comment about making a comment, etc. - you get the picture.


RE: Small typo
By masher2 (blog) on 9/18/2007 1:14:25 PM , Rating: 5
We get paid for each comment in the article. Adding a typo now and then is an easy way to increase the bottom line.


RE: Small typo
By Bioniccrackmonk on 9/18/2007 1:22:53 PM , Rating: 2
quote:
We get paid for each comment in the article. Adding a typo now and then is an easy way to increase the bottom line.


Lol, never figured you as a capitalist Masher, guess we learn something new everyday. :)


RE: Small typo
By quickk on 9/19/2007 10:09:49 AM , Rating: 2
Taht is sngatre... I do not rbemmeer eevr seineng any tpyos on DiaTlyech.


RE: Small typo
By Master Kenobi (blog) on 9/18/2007 1:16:33 PM , Rating: 2
We are after all only human.....


Toshiba vs Sony
By adam92682 on 9/18/2007 12:35:19 PM , Rating: 2
Does anyone else think it's strange that Toshiba is helping Sony make its best selling blu-ray player, the PS3? Once the purchase of the Cell production line is complete, Toshiba should slow down or temporarily stop production of the cell CPU to create a shortage of available PS3s. I believe this would deal a devastating blow to blu-ray and allow HD-DVD to win.




RE: Toshiba vs Sony
By Gul Westfale on 9/18/2007 12:41:16 PM , Rating: 2
yes but causing an intentional slowdown when sony would obviously have a binding production contract with them would be illegal.


RE: Toshiba vs Sony
By homerdog on 9/18/2007 12:50:11 PM , Rating: 1
Holy crap I was just about to say that. Not the part about Toshiba creating a Cell shortage (I think that would be illegal) but the fact that these chips are going into the machine that my single handedly kill HD-DVD. I guess they figure Sony will get the chips anyway, so why not?


RE: Toshiba vs Sony
By walk2k on 9/18/2007 3:00:44 PM , Rating: 2
Yes I also thought it was strange that Toshiba would now be manufacturing the main component of the most popular Blu-ray player.

I guess Sony isn't that worried about the competition...


RE: Toshiba vs Sony
By Torched on 9/18/2007 4:06:18 PM , Rating: 3
Sony uses the Toshiba super companion chip for the PS3. HD-DVD vs Bluray has nothing to do with the chip internals of the PS3. They are partners with IBM in developing the platform.


RE: Toshiba vs Sony
By Torched on 9/18/2007 3:56:14 PM , Rating: 2
Not strange at all considering Toshiba co-developed cell with IBM and Sony. You must remember Toshiba uses the Cell in some of its own products.

This move is a great way to get a cash infusion. Fab-lite is becoming a common strategy since a Fab can be expensive to run when production cannot be filled to capacity.


RE: Toshiba vs Sony
By animedude on 9/18/2007 4:37:55 PM , Rating: 2
Paying $870M for a fab and not use it. You think monkey is running Toshiba?


Article lacks context
By Carl B on 9/18/2007 12:53:01 PM , Rating: 2
This DT article leaves out some key points and context concerning Sony's stance on semis and Sony/Toshiba's relationship in general; I'd advise readers read additional material.

http://linuxps3.net/articles/cell-broadband-engine...




Completing their Failure
By Shadowmaster625 on 9/18/2007 1:32:27 PM , Rating: 2
They delayed bringing the Cell to the mass market, because they had to wait for their precious blu-ray. And look what it costed them! You can't afford to sit on new technology for even 6 months!




yet another indication
By Gul Westfale on 9/18/07, Rating: -1
RE: yet another indication
By darkpaw on 9/18/2007 11:59:41 AM , Rating: 5
While I don't think anyone could argue the PS3 has been sucessful as Sony had hoped, this would just put them on the same standing as everyone else as far as producing CPUs goes. None of the other console vendors produce their own CPUs either, why would they take up the expensive of manufacturing when their expertise is really on the design side?


RE: yet another indication
By FITCamaro on 9/18/2007 12:10:40 PM , Rating: 1
Why would you want to be on the same standing as your competitors when you're able to be one level above them?

And based on the PS3s sales performance, I'd say their "expertise" in design needs a little more work. About the only products of theirs I think are decent are their TVs. And even those you can find equivalently speced models from other brands for less money. Their car stereo head units aren't bad either but again, you can find lower priced equivalents (granted most people choose those based on appearance not the best features).


RE: yet another indication
By Bioniccrackmonk on 9/18/2007 1:19:43 PM , Rating: 3
quote:
Why would you want to be on the same standing as your competitors when you're able to be one level above them?


That statement doesn't hold water when you take into account everything that goes into a next generation console. What if company A can make a certain part at a fraction of the cost and with higher yields compared to company B, what would be the wiser buisness move there?

quote:
And based on the PS3s sales performance, I'd say their "expertise" in design needs a little more work.


Last time I checked, their system isn't the one that has a 33% failure rate. Also, one year might not sound like a long time, but when system A has been out at least a year longer then system B, I am willing to bet that system A will have a better library and hence sell more quantity.

quote:
And even those you can find equivalently speced models from other brands for less money.


Another general statement, same thing could be said for just about any top tier brand you look at.


RE: yet another indication
By Loc13 on 9/18/2007 4:11:10 PM , Rating: 2
Personally I like Sony's product design. Their walkman mp3 player and sony ericsson cellphones are all very stylish and packed with features. And most people would agree that the PS3 hardware design is excellent, although the price is too high for most consumers, and they need more good games.


RE: yet another indication
By masher2 (blog) on 9/18/2007 12:07:29 PM , Rating: 4
You have to remember that Toshiba (along with IBM and Sony) was one of the original developers of Cell, and all three companies have had joint development/production agreements for many years now. So this move isn't really that surprising. Sony is in the business of making consumer electronics, not running semi fabs.


RE: yet another indication
By Gul Westfale on 9/18/2007 12:15:21 PM , Rating: 2
true, but the cell is also used in other electronic devices, like HDTVs for example. wouldn't sony have an advantage by making money on the chips it sells to other manufacturers?


RE: yet another indication
By masher2 (blog) on 9/18/2007 12:23:32 PM , Rating: 4
In theory. Of course, in theory Sony could make money by selling used cars, rare wines, and the popcorn in theatres that run its movies.

In practice, conglomerates often find themselves spread too thin, and decide to sell off non-core assets so they can focus better on what they feel they do best.


RE: yet another indication
By eilersr on 9/18/2007 12:50:19 PM , Rating: 3
It's not just a matter of the PS3 or the Cell processor.

Many companies, including Sony are moving to a "fab-lite" strategy where it is just more economical to outsource mfg. of chips and/or sell some fabs, but keep some portion that are still profitable (e.g., fully depreciated).

The costs for having a fab and keeping up with Moore's Law are rising almost exponentially. Very few companies can afford to go it alone. Most companies are either partnering (AMD/IBM) or selling it off.

The wouldn't sell it off if it was just a short-term thing. Sony, despite all their recent mistakes, is smarter than that. They're taking a hard look at what business they want to be in and where they can make money. Philips did a similar thing when they sold off their semi unit to focus on consumer electronics and industrial applications. Sony probably isn't making as radical of a move, but this is indicative of the general trend of the industry.


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