Tokyo:

Japanese company Toshiba announced that it had agreed to purchase high-performance semiconductor operations from its rival Sony for 835 million dollars, just a day after losing to its competitor in a tough DVD format war.

The new Playstation 3 control and box are displayed at a Sony Computer Entertainment America news conference in San Francisco, California, October 19, 2006. Sony Corp said on Wednesday it will sell its microchip production facilities in western Japan to Toshiba Corp for 90 billion yen ($835 million), in their latest move to focus on their core businesses. REUTERS/Kimberly White

In spite of being tough competitors both the companies announced that they had made up a deal to form semiconductor joint ventures were 60% is owned by Toshiba Corp. and 40% is owned by Sony Corp.

Toshiba will pay 90 billion yen to Sony for its operations in western region of Nagasaki to make high technology semiconductors, including its talent behind PlayStation 3 video game console, a joint statement said.

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