Sony to Develop Chips With Infineon to Cut Costs

Sony Corp. will design chips with Infineon Technologies AG to reduce development costs at its consumer electronics division, the world's second largest.

Sony and Infineon's Qimonda AG will own equal stakes in a Tokyo-based venture that will design DRAM chips that speed up data processing in cameras and mobile phones, the companies said today in a statement. Elpida Memory Inc., a Sony supplier, fell on the Tokyo Stock Exchange on concern it will lose orders.

The agreement will help Tokyo-based Sony reduce costs as Chief Executive Officer Howard Stringer overhauls the chip operations to raise overall profitability to the highest this decade. The semiconductor unit, which makes processors for PlayStation 3 game consoles, posted a 10 billion yen ($86 million) loss last year.