Sony will cut back on future chip spending and may not produce advanced “cell” microchips used in its PS3 game gear in-house as it seeks better returns on its investments. Investment in chips would come down significantly from the 460 billion yen ($ 3.8 billion) allocated over the three business years since April 2004. Sony tentatively plans to start commercial production of 45nm chips in late 2008 or early 2009. They are going to study carefully whether they should carry out all the capital investment and produce them in-house. When they first offered the PS2, there were no semiconductor companies that were able to make chips for the machine, so Sony did it themselves. But now, there are companies [TSMC, UMC] that specialize in chip production so Sony probably won’t need to do everything by themselves for next-generation chips.

Sony will cut back on future chip spending and may not produce advanced “cell” microchips used in its PS3 game gear in-house as it seeks better returns on its investments. Investment in chips would come down significantly from the 460 billion yen ($ 3.8 billion) allocated over the three business years since April 2004. Sony tentatively plans to start commercial production of 45nm chips in late 2008 or early 2009. They are going to study carefully whether they should carry out all the capital investment and produce them in-house. When they first offered the PS2, there were no semiconductor companies that were able to make chips for the machine, so Sony did it themselves. But now, there are companies [TSMC, UMC] that specialize in chip production so Sony probably won’t need to do everything by themselves for next-generation chips.