Toshiba and Sony Execute Manufacturing Transfer Agreement

Business Wire: Toshiba and Sony announced that they have executed definitive agreements based on the non-binding memorandum of understanding signed on December 24, 2010 between Toshiba and Sony for the transfer from Toshiba to Sony of semiconductor fabrication equipment located at Nagasaki Technology Center operated by Nagasaki Semiconductor Manufacturing Corporation ("NSM"), a joint venture of Toshiba (owned 60%) and Sony (owned 40%).

The purchase price for this equipment is 53 billion yen. The closing for this transfer is planned for April 1, 2011. Following the execution of the transfer, Toshiba and Sony plan to terminate their NSM joint venture relationship.

Sony's goal is to expand its CMOS image sensor business by utilizing the equipment to be transferred to Sony that is located at Nagasaki Technology Center. The purchase price of 53 billion yen is included in the approximately 100 billion yen CMOS image sensor investment announced by Sony on December 27, 2010.

Nikkei adds that Sony controls about 70% of the market for image sensors for digital cameras. Sony aims to double its image sensor production capacity to 50,000 wafers a month by March 2012, from 25,000 currently.