Sony has confirmed reports about the acquisition of certain assets from Toshiba, including its semiconductor fabrication facilities, equipment and related assets in Oita Prefecture, Japan.
The companies are negotiating the terms of the deal which has been sealed with a non-binding memorandum of understanding (MoU).
As per the deal, Toshiba will transfer fabrication facilities, equipment and related assets belonging to its 300mm wafer production line.
The site will be operated as a production facility of Sony Semiconductor Corporation for manufacturing CMOS image sensors, which has high demand in the market.
CMOS sensors use less power, and are said to provide faster readout at a lower production cost than CCD sensors.
Sony is planning to join the ranks of HP and split its business, with its image sensor business becoming a new subsidiary called Sony Semiconductor Corporation.
The deal is likely to allow Toshiba to concentrate on products where it has a high technological expertise and will also help the company improve the profitability of its system LSI business.
The companies are planning to execute legally binding definitive agreements by the end of calendar year 2015 followed which the transfer of assets will take place by the year ending on March 31, 2016.
