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To: Don Green who wrote (43244)	6/1/2000 1:42:00 AM
From: Don Green	Respond to of 93625

Sony Group To Invest 130 Bln Yen In System Chip Production Thursday, June 1, 2000 TOKYO (Nikkei)--Sony Corp. (6758) and Sony Computer Entertainment Inc. (SCE) agreed Thursday to invest an additional 130 billion yen in system chip development and production this year, company sources said. The chips will be used in SCE's PlayStation2 video-game consoles and for image processing. The two firms will also develop system chips for digital image transmission, selling them to manufacturers of digital equipment. The Sony group firms and Toshiba Corp. (6502), which helped SCE to develop the Emotion Engine central processing unit for PlayStation2, will announce the project on Thursday afternoon. Most of the investment will be shouldered by SCE. SCE and Toshiba set up a joint venture at Toshiba's Oita Prefecture plant in March 1999 to make the Emotion Engine chips, while system chips for image processing are made at Sony's Nagasaki facility. SCE will supply 20-30 billion yen of the new investment to the joint venture with Toshiba. The remaining amount will be allocated to expanding output capacity at Sony group plants making system chips for PlayStation2 consoles and for the development/production of new chips. In two years, SCE plans to manufacture chips for digital film distribution equipment and digital broadcasting equipment. The Sony group seeks to strengthen its chip division by selling sophisticated chips to other firms. (The Nihon Keizai Shimbun Thursday evening edition)