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Tokyo, Japan, February 28, 2011 --- Toshiba Corporation ("Toshiba"), Sony Corporation ("Sony") and Sony Semiconductor Kyushu Corporation ("SCK") today 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 SCK of certain semiconductor fabrication equipment.
The fabrication equipment to be transferred from Toshiba to SCK are semiconductor fabrication equipment located at SCK's Nagasaki Technology Center operated by Nagasaki Semiconductor Manufacturing Corporation ("NSM"), a joint venture among Toshiba, Sony and Sony Computer Entertainment Inc. ("SCEI"). The purchase price for this equipment is 53 billion yen. The closing for this transfer is planned for April 1, 2011, subject to the receipt of any necessary government approvals. 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 where demand is volatile, 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, demand for which is increasing, and expand its CMOS image sensor business by utilizing the equipment to be transferred to Sony that is located at SCK's 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.
No impact is anticipated on either Toshiba or Sony's consolidated financial forecasts for the current fiscal year ending March 31, 2011. Any impact on financial results for the fiscal year ending March 31, 2012 and beyond is currently being assessed.