Anyway heres the Q&A's
Q&A
What is the breakdown of 200 billion yen by fiscal year and by production facility?
Installation of clean room and pilot line in SCE Fab2 (1st floor) will start from this fiscal year. Also together with Toshiba, we plan to initiate installation of fabrication facility within
Toshiba's Oita plant, within the framework of OTSS joint venture. Execution of subsequent investment will be determined by taking optimal timing, place and allocation into
consideration.
Are investments to IBM's and Toshiba's production facilities included in 200 billion yen?
Together with Toshiba, we plan to initiate installation of fabrication facility within Toshiba's Oita plant, within the framework of OTSS joint venture. Execution of subsequent investment
will be determined by taking optimal timing, place and allocation into consideration.
If asked of the possibility of collaboration with IBM
As for the execution of subsequent investments, we will further investigate, taking allocation and place into consideration. (No concrete details are given.)
When does the operation start and what is the wafer processing capacity?
Operation of the pilot line will start within this fiscal year. Wafer processing power is total 1,500 units per month (NOTE: total of OTSS and Fab)
Will you manufacture products other than Cell?
We plan to produce various system LSIs. We cannot comment on details of each LSI.
Does this investment of 200 billion yen cover production of Cells to be used by IBM, Toshiba and Sony (Electronics) as well?
This investment is planned to be used for manufacturing semiconductors used for SCE's business. Sony Group's applications are also considered.
Can the investment applied for further cost cut of PS2?
This investment is for manufacturing next generation system LSIs, including Cell, and LSIs used for PS2 will continue to be manufactured at existing fabrication facilities at Fab1, Fab2
(2nd floor) and OTSS. As we have announced today (in EE+GS 1 chip announcement), by completing the most advanced 90 nanometer embedded DRAM process and initiating mass
production from this fiscal year, we think further cost cut for PS2 will progress further.
When do you plan to launch SCE's next generation computer entertainment system?
We are not able to comment at this point in time. PS2 is in its third year and is still growing in the midst of its harvest years. SCE will continue to promote both PS and PS2 formats.
Do you plan to make any additional investments to this 200 billion yen? If so, how much?
At this point in time, we consider 200 billion yen investment over three years is optimal, however, depending on market development/expansion or changes in economic climate, there
may be a possibility of adjusting the plan.
What is the estimated pay-back period of this 200 billion yen?
Along with the good PS2 business growth, over half of the 300 billion yen scale investment made for PS2 is being recouped. Total recoupment is expected in the FY2004. Similar
scheme will be applied for this 200 billion yen investment.
What is the depreciation method?
In principle, five year fixed installment depreciation.
When does depreciation start? (Within FY2003?)
At this point in time, we are not able to comment on details of production schedule.
What about funding? (Do you intend to issue bond?)
Investment will be executed within Sony Group financing plans.
It is assumed that current production capacities for PS2 in Fab1, Fab2 and OTSS will become excessive. Do you have any concrete plans for the usage of such excessive capacity?
We are currently reinforcing existing facilities, including 90 nanometer process, and various semiconductors such as the new chip integrating EE and GS and semiconductors for network
peripherals will be fabricated. By taking advantage of embedded DRAM process that already has world's highest class productivity and competitiveness in cost, we intend to use the
capacity to effectively produce devices for digital products, such as CMOS image sensor, whose demand is growing up rapidly.
How does this investment of 200 billion yen relate to Sony's semiconductor strategy?
(Sony to reply) We understand that this is an important investment for Sony Group toward the broadband network era. (In the future, it becomes possible to apply the advanced
semiconductor process technologies led by SCE for Sony Group products.)
Do you plan to sell Cell to third party companies?
This investment will be used to meet demands within the Sony Group. There is a possibility of selling Cell chips outside, however, initially, we intend to use them by ourselves (SCE and
Sony Group).
What Sony applications (other than next generation computer entertainment system by SCE) will be equipped with Cell?
We have established a new company BBNC with the aim of strategically fusing game system and electronic products. Future plans will be determined by this company.
Does Sony (and not SCE) plan to make additional investments?
Not determined at this point in time.
Q&A FOR TOSHIBA:
Will Toshiba start to produce Cell for yourself?
Yes. We intend to sell this new microprocessor for the broadband era for various products that connect to the networks.
When do you start producing? (test production, mass production)
(No comment on production timing/quantity.)
Is there any relation between SCE's investment and Toshiba's production of Cell on its own?
The announced investment is for the Sony Group. Toshiba will pusue its own plans.
Is there any relation with Toshiba's already announced 350 billion yen investment for semiconductor business?
350 billion yen is the scale of investment Toshiba is planning. It has no direct connection with Sony Group's investment this time.
Does a portion of your 300 billion yen investment overlap with a portion of SCEI's 200 billion investment?
350 billion yen is the scale of investment Toshiba is planning. It has no direct connection with Sony Group's investment this time. However, basic process technologies have various
aspects in common and there is a possibility of collaboration with Sony Group.
For what products does Toshiba wish to use Cell?
Various applications including home gateway products that require high-speed processing power and mobile devices using low power. (extracted from April 2002 press release)
Q&A FOR IBM:
Will IBM start to produce Cell for yourself?
We will further investigate.
When do you start producing? (test production, mass production)
No comment on production timing/quantity.
Is there any relation between SCE's investment and IBM's production of Cell on its own?
The announced investment is for the Sony Group and it has nothing to do with IBM's own plans.
Does SCEI's 200 billion investment include a portion to be invested to IBM's fabrication facility (East Fishkill plant)?
We would like to investigate the possibility with SCEI.
For what products does IBM wish to use Cell?
XXXX
(Does a portion of IBM's already announced investment overlap with a portion of SCEI's 200 billion investment?)
(We would like to seek for the best way including the possibility of working with SCEI.)