Sony to cut chip production costs

Sony has announced a partnership with Infineon Technologies for future production of DRAM chips, which should have an impact on the semiconductor unit's fortunes.

The division, which also makes processors for the PlayStation 3, posted a JPY 10 billion (USD 86 million) loss last year according to a report on Bloomberg.

The deal will take the form of a Tokyo-based joint venture and will work initially on chips for consumer electronics goods, such as cameras and mobile phones.

The move follows not long after rumours that Sony is planning to sell the production line for the PS3's Cell processor to Toshiba, and comes at a point at which the company is under increasing pressure to announce a price cut in Europe for the flagship console.