Japan-based Sony and Toshiba announced on October 18 an agreement on the joint-venture semiconductor business between the companies. Under the terms of the agreement, Sony is expected to transfer its semiconductor facilities which manufacture PlayStation 3-related chips to Toshiba, according to an EE Times report.

Pursuant to the agreement, Sony's 300mm wafer plant in Nagasaki, which primarily produces Cell chips for use in PlayStation 3 game consoles, will be transferred to Toshiba by the end of March 2008. Furthermore, Sony will spin off a plant owned by OTSS (Oita TS Semiconductor), a joint venture formed between Toshiba and Sony for the production of RSX graphic chips. The Oita plant will be transferred to Toshiba as well.

As part of the agreement, Sony and Toshiba also plan to set up a semiconductor joint venture, in which Toshiba will hold a 60% stake, while Sony and its subsidiary SCEI (Sony Computer Entertainment) will equally share the remaining 40%. The new joint venture is projected to manufacture high-performance semiconductor products, including the aforementioned Cell processors and RSX graphics chips. Financial details of the deal were not yet disclosed, though.