Over the next three years, the Japanese consumer electronics giant will invest and build the 65-nm, 300-mm line within its Fab2 plant, a fab based in Isahaya City, Nagasaki Prefecture.

With this investment, SCEI will manufacture its new microprocessor for broadband applications, code-named "Cell". It will also make LSI devices for next-generation computer entertainment systems.

Execution of the entire investment will be determined by taking optimal timing, place and allocation into consideration, according to the Tokyo-based company.

Since the spring of 2001, SCEI has been engaged with IBM Corp. and Toshiba Corp. in the development of the new "Cell" microprocessor. The three companies have also been developing advanced semiconductor process technologies. IBM, Sony and Toshiba will have the ability to make chips based on the process within their respective fabs (see April 2, 2001 story ).

Sony also wants to hedge its bets by having the ability to make the "Cell" processor within its own fabs. "The introduction of advanced semiconductor technologies is imperative for the next generation processors that support the broadband network era," said Ken Kutaragi, president and chief executive of SCEI and executive deputy president of Sony, in a statement.

"SCEI's Fab 2 already applies the most advanced semiconductor technology to produce high performance LSIs, not only for game hardware but also other electronic products," added Kunitake Ando, president and group chief operating officer of Sony, in a statement. "The planned investment will further enhance this advanced semiconductor facility to become a technology driver for the next generation of Sony products," he said.

"Building on this, Sony's Broadband Network Company, newly established as of April this year, will play a key role in developing next generation electronic devices and linkages to game devices," he added.

Sony is also reducing its trailing-edge capacity. Recently, the company said it would shut down a wafer fab in San Antonio, Texas--a move that impacts part of the company's foundry efforts. The action will also affect some 600 jobs within Sony's San Antonio's operations (see March 31 story ).