Sony recently announced that it was spinning its moneymaking image sensor business into its own company that’ll be named Sony Semiconductor Solutions. The company has supplies CMOS image sensors used in DSLR cameras and camera sensors in smartphone by companies like Apple, Samsung, Xiaomi, and Motorola.
The Tokyo, Japan-based firm said on Wednesday that it has entered into a non-binding agreement with Sony to let go of the business, as well as a variety of other equipment and assets in Oita Prefecture.
Toshiba will sell its image sensor business to Sony for approximately 20 billion yen ($164.69 million). The news comes after rumors spread of the purchase earlier in October.
Toshiba will no longer produce CMOS sensors at all, and instead will concentrate efforts on areas in which it has “a high technological advantage”, and to build profitability in its integrated circuit business.
There are also talks of Toshiba outsourcing production of the semiconductor products Toshiba presently manufactures on its 300mm wafer production line to Sony Semiconductor Corporation following the transfer.
The news first came out from a report in the Nikkei newspaper as the Toshiba’s president, Masashi Muromachi, pledged to restructure its businesses that have been performing rather too rarely in a bid to fix the balance sheet that was caused by the scandal that started in 2008.
Last month, the company admitted it had overstated its profits by almost $2 billion over the past seven years.
For Sony, the acquisition of Toshiba’s image sensor business would further solidify its already dominant position in the industry.
Toshiba and Sony aim to complete the transfer within the fiscal year ending March 31, 2016, subject to any required regulatory approvals.