Toshiba, Sony, and SCEI Sign a Memorandum of Understanding Establishing a Joint Venture to Strengthen Manufacturing Capabilities for High-Performance Semiconductors



    TOKYO, October 18 /CNW/ - Toshiba Corporation, together with Sony
Corporation and Sony Computer Entertainment Inc. (Sony Group) today announced
that they have signed a non-binding memorandum of understanding expressing
their intent to establish a joint venture that will produce high-performance
semiconductors, including the 'Cell Broadband Engine(TM)' (Cell/B.E.) and the
'RSX' graphics engine, and to transfer to Toshiba from Sony Group the 300mm
wafer line fabrication facilities installed in Fab 2 of Sony Semiconductor
Kyushu Corporation's Nagasaki Technology Center (SKC) by the end of March
2008. Following the transfer, production on the line will be operated by the
joint venture. Subject to receipt of any necessary government approval and
after further due diligence, Toshiba and Sony Group will aim to finalize the
definitive agreements as soon as possible before the end of March 2008.

    This collaboration will allow Toshiba to expand and enhance its system
LSI business by increasing order volume and securing regular orders of
high-performance semiconductors for PlayStation, while Sony Group will aim for
the further growth of the PlayStation business by achieving process migration
of high-performance semiconductors.

    Toshiba and Sony Group have forged a solid partnership in the development
and production of high-performance semiconductors for game consoles, including
PLAYSTATION(R)3. The new joint venture will further build on this record of
achievement by utilizing the 300mm wafer line fabrication facilities that
Toshiba will acquire from Sony Group, where most production will focus on 65nm
process semiconductors. Toshiba and Sony Group will together promote further
advances in manufacturing technologies and efficiencies by leveraging their
knowledge and experience, targeting migration to 45nm process mass production.

    Concurrently, Toshiba and Sony Group also signed a non-binding memorandum
of understanding on the transfer to Toshiba of the assets of Sony Group on the
March 2008 expiry of Oita TS Semiconductor Corporation (OTSS) joint venture
between Toshiba and Sony Group. Located within Toshiba's Oita Operations
semiconductor plant, OTSS was established to manufacture semiconductors for
PLAYSTATION(R)2 in 1999. Toshiba and Sony Group are also aiming to finalize
the definitive agreements on the transfer to Toshiba of the assets of Sony
Group in OTSS as soon as possible before the end of March 2008.

    Joint Venture Outline

    Company name: To be determined

    Establishment Date: April 1, 2008 (plan)

    Location: 1883-43 Tsukuba-machi, Isahaya-city, Nagasaki, Japan

    Capitalization: Approx. 100 million yen (plan)

    Ownership: 60% Toshiba, 20% Sony, 20% SCEI

    Representation: To be determined (Chairman and CEO to be appointed by
Toshiba, President and COO to be appointed by Sony)

    Business: Manufacture of high-performance semiconductors, including
'Cell/B.E.' and 'RSX' graphic engine, etc.

    Employees: To be determined

    Outline of OTSS

    Company name: Oita TS Semiconductor Corporation

    Established: June 1, 1999

    Location: 3500 Oaza Matsuoka, Oita, Oita Prefecture (in Oita Operations,
Toshiba Corporation)

    Ownership: 51% Toshiba, 49% Sony

    Business: Manufacture of semiconductors for PlayStation




For further information:

For further information: Toshiba Corporation Hiroko Mochida,
+81-(3)3457-2105 Corporate Communications Office
http://www.toshiba.co.jp/contact/media.htm or Sony Corporation Chisato
Kitsukawa, +81-(3)6748-2200 Corporate Communications or Sony Computer
Entertainment Inc. Corporate Communications Tel: +81-(3)6438-8686

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