Japanese electronics monoliths Sony and Fujitsu have agreed to co-develop processors in a bid to cut the immense cost of making chips.
Falling chip prices and the dominance of Intel in the PC processor market have prompted the partners to co-operate. Sony and Fujitsu will make chips under the 0.18 micron process - the next stage for the chip companies, which are currently manufacturing 0.25 micron chips.
Fujitsu will give Sony the 0.18 micron technology and the partners will make chips at a Fujitsu factory in autumn 1999. Japanese newspapers said the companies will invest $800 million in the project but no other financial details have been revealed, although they are tipped to move on to the 0.13 micron process after the millennium.
Both NEC and Toshiba have admitted in the last few days that falls in memory and processor prices will cut their profits.
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