Sony to buy Toshiba’s image sensor division

Sony is close to purchasing Toshiba’s image sensor division, according to a report by Reuters. The deal is currently in private discussion with the announcement expected to be made later this week. If the deal goes through, Sony will own Toshiba’s camera sensor manufacturing plant in Oita, Southern Japan.

Following its earnings scandal, where the company is alleged to have overstated its earnings by US$1.3-billion in 2008/2009, Toshiba is looking to turn the tide and offloading parts of the company will make up the deficit.

For Sony, a deal like this will foster its team and help the company to cement its position as a leader in the camera sensor space. Sony is the go to company for image sensors and cameras. The company has supplies CMOS image sensors used in DSLR cameras and camera sensors in smartphone by companies like Apple, Samsung, Xiaomi, and Motorola.

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The deal, according to sources in the know, will see Sony and Toshiba exchange about US$165-million.

Though Sony buying an image sensor division makes complete sense, it offers a somewhat dim picture for Sony’s mobile division. It would appear from this deal that Sony wants to focus on its image sensor business and what this means for its mobile business is unclear. However Sony has before refuted reports that it wants to sell its mobile division.

The two companies have not confirmed the news of the deal. The deal is expected to be announced sometime this week.