Sony likely to sell graphics chip facility

Sources claim that Sony Corp. is in talks with Toshiba Corp. to sell its graphics chips production facility in Japan, according to a Reuters report.

The move would be the latest step of the embattled company to shed costly semiconductor assets and focus on strategic products such as image sensor chips used in digital cameras and camcorders, the report said. Sony was also rumored to be selling off its Cell microprocessor fab to Toshiba, but Sony issued a statement denying the speculations, saying that "nothing concrete" has been determined.

Sony chief executive Howard Stringer disclosed in February that the company's business will steer to "fab-lite" operation, which will involve outsourcing production of the Cell processor.

Spokesmen at Sony and Toshiba declined to comment.