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Sony and IBM team up

Sony has hired IBM to develop and produce a high-performance microprocessor for Sony´s next generation of consumer electronics, including the PlayStation 3.

Announcement 1 min read
Gregor Klevže 21 Aug 2014 828 views

Sony has hired IBM to develop and produce a high-performance microprocessor for Sony´s next generation of consumer electronics, including the PlayStation 3.

The agreement, announced early Monday, could bring IBM (NYSE: IBM) revenue of between $2 billion and $4 billion over three years, people familiar with the matter said.

It marks a big win for IBM´s semiconductor business, which had $3.5 billion in sales to external customers last year.

John Kelly, senior vice president in charge of technology for IBM, said the new chip, code-named "Cell," will be designed at the Armonk, N.Y., company´s Austin, Texas, lab, and will be produced at a fabrication plant in East Fishkill, N.Y., that IBM is building at a cost of $3 billion.

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http://www.zdnet.com/zdnn/stories/news/0,4586,2694855,00.html

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