Toshiba and Sony Semiconductor Kyushu (SCK) have executed definitive agreements based on the non-binding MOU signed earlier between Toshiba and Sony for the transfer from Toshiba to SCK of certain semiconductor fabrication equipment.

Toshiba and Sony announced plans to transfer from Toshiba to Sony the semiconductor fabrication facilities owned by Toshiba and operated by Nagasaki Semiconductor Manufacturing Corp (NSM), a joint venture among Toshiba, Sony and Sony Computer Entertainment (SCEI).

The equipment to be transferred from Toshiba to SCK is semiconductor fabrication equipment located at SCK's Nagasaki Technology Center operated by NSM. The purchase price for this equipment is JPY53 billion (US$646 million). The closing for this transfer is planned for April 1, 2011, subject to the receipt of any necessary government approvals.

In addition, following the execution of the transfer, Toshiba, Sony and SCEI plan to terminate their NSM joint venture relationship.

By carrying out this transfer, Toshiba aims to pursue an asset light business model for its system LSI business. Promoting this measure in the system LSI area and concentrating management resources in its Oita Operations will allow Toshiba to enhance its productivity and cost structure.

Sony's goal is to further strengthen its production capacity for CMOS image sensors (CIS), and expand the CIS business by utilizing the equipment to be transferred to Sony that is located at SCK's Nagasaki Technology Center. The purchase price of JPY53 billion is included in the approximately JPY100 billion CMOS image sensor investment announced by Sony on December 27, 2010.

No impact is anticipated on either Toshiba's or Sony's consolidated financial forecasts for the current fiscal year

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved