Sony, Toshiba to boost chip output for next-generation computer games

TOKYO (AFP) Apr 21, 2003
Japanese electronics giants Sony and Toshiba plan to invest a combined 4.2 billion dollars in the next three years to boost semiconductor output for next-generation computer games, officials said Monday.

Sony and its computer games arm, Sony Computer Entertainment Inc. (SCEI), said they would invest 200 billion yen (1.7 billion dollars) to produce chips using the 65-nanometer process on 300 millimeter (12 inch) wafers.

"With this investment, SCEI will manufacture the new microprocessor for the broadband era, code-named 'Cell,' as well as other system LSIs (large-scale integrated circuits), to be used for the next generation computer entertainment system," the two companies said in a joint statement.

As a first step, SCEI will spend 73 billion yen by March 2004 to introduce new production lines for semiconductor production at its plant in Nagasaki on the southwestern Japanese island of Kyushu, 950 kilometers (589 miles) west of Tokyo.

Toshiba, which has been working on chip development with Sony and IBM since 2001, said it would also beef up production of system LSIs to be installed in Sony's computer games.

"Combined with investment by Toshiba, the total amount of our capital investment will be 500 billion yen (4.2 billion dollars)," SCEI president Ken Kutaragi told a news conference.

Sony was now aiming at building up a global broadband network, combining games, movies, publications and television through its PlayStation console, Kutaragi said.

"Sony Group aims to further develop and expand the market with its advanced semiconductor technologies and a rich and wide array of applications," Kutaragi said. "This investment forms a strategic foundation towards this goal."

SCEI said it would start making 90-nanometer chips at a joint venture plant in Oita, east of Nagasaki, with Toshiba later this year.

Toshiba separately said it would start building a new system LSI fabrication unit in June in Oita.

"Toshiba is now working with SCEI on joint implementation of production facilities for the manufacture of SCEI's products," Toshiba said.

Toshiba's Oita plant will make LSIs, mainly for broadband network applications, using embedded DRAM and 65-nanometer process technology, the company said.

Toshiba plans to make chips for SCEI and shift to a further advanced 45-nanometre technology in the future.

Some 40 billion yen will be invested in the new plant by March 2004 as part of a four-stage 200 billion yen investment, Toshiba said, adding that full production would start in the first half of the year to March 2005.

SPACE.WIRE