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To: Gary Wisdom who wrote (17024)	3/4/1999 8:01:00 AM
From: Shumway	Respond to of 93625

Sony Computer to invest Y70 bln in chip facility TOKYO, March 4 (Reuters) - Sony Computer Entertainment Inc, a unit of Sony Corp , said on Thursday it would set up a new subsidiary to make semiconductors using 0.18-micron embedded DRAM technology, and would invest 70 billion yen in the new facility. The chips will be used in Sony's next-generation PlayStation video game machines. In a separate statement, Toshiba Corp and Sony Computer said they would establish a joint venture to make 128-bit microprocessors for the new PlayStations. The venture, which will be owned 51 percent by Toshiba and 49 percent by Sony Computer, will have initial production capacity of 10,000 wafers per month and will make the new chips available from the autumn of this year. The venture will be capitalised at 100 million yen. Sony Computer said it will invest 50 billion yen in equipment for the joint venture, which will operate a production line in Toshiba's Oita plant in southern Japan. "This is a significant step in establishing a new business alliance between Sony and Toshiba," Sony President Nobuyuki Idei told a news conference. Meanwhile, Sony Computer said the 70 billion yen production facility will be making graphic chips, which will be available from spring 2000, for PlayStation. On Tuesday, Sony unveiled a new 128-bit microprocessor which will provide the PlayStation with a high capacity to manipulate digital information, allowing for more realistic graphics. The new PlayStation will be launched in Japan in next winter, Sony Computer Entertainment, a Sony unit, said on Tuesday. Development costs for the 128-bit microprocessor and a graphic chip to be used in the next-generation PlayStation totalled about 20 billion yen, Sony officials said. Source: REUTERS reuters.com