Toshiba to make chips for the PlayStation 3

Sony and Toshiba found themselves on opposing sides of the high-definition format war, with the former pushing Blu-ray with its PlayStation 3 console and eventually causing Toshiba to capitulate yesterday. In an interesting twist, Toshiba will now be producing chips for the PS3. Reuters reports that Sony has announced that it will sell its chip fabrication plant based in Nagasaki, Japan to Toshiba.

Reuters says the deal, which amounts to ¥90 billion, or $835 million, is a centerpiece of Toshiba's manufacturing joint venture with Sony. The venture was first announced last year and is expected to begin operations on April 1. Through the venture, Reuters explains that Toshiba will produce Cell microprocessors and RSX graphics processors for the PlayStation 3 as well as other chip products for its own devices.

According to a previous PC World report about the venture, manufacturing will be done on 300mm wafers, and it will shift from 65nm to 45nm process technology under Toshiba's leadership. Sony, meanwhile, wants to focus on its core businesses and leave Toshiba to shoulder the heavy costs associated with chip production equipment.

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