Sony Dipping $1.66B Into New Chips

Sony Corp. said Monday it will invest about $1.66 billion over the next three years to produce advanced chips that will be used in its next-generation computer entertainment system.

The Japanese consumer electronics company and its video game unit will invest in state-of-the-art 12-inch wafer-based chipmaking facilities using 65-nanometer process technology, the companies said in a joint statement.

About $608 million of the investment is earmarked for the current fiscal year through March 2004, the statement said.

The Sony group plans to manufacture large-scale integrated circuits for broadband networking applications, including a new general purpose processor for its next-generation computer entertainment system.

Sony Computer Entertainment Inc., Sony's video game unit, has been jointly developing the processor — code-named CELL — with Japan's Toshiba Corp. and U.S. computer giant IBM since 2001.

A new production line will be installed in a chip plant operated by Sony Computer Entertainment in the southern Japanese city of Isahaya, the statement said.