Toshiba plans to sell image sensor business to Sony

Toshiba Corp is planning to sell its image sensor business to Sony Corp for around ¥20 billion ($165 million) as part of its restructuring plan, Reuters today reported, citing sources with knowledge of the deal.

Image sensors are part of the Japanese company's system LSI semiconductor business and are used for various applications such as smartphones, tablet PCs, surveillance cameras, automotive cameras and digital cameras.

Toshiba, which has its image sensor manufacturing plant in Oita, southern Japan, plans to exit the sensor business as per its restructuring plan after it was revealed that it overstated earnings by $1.3 billion over the last seven years (See: Toshiba's president Hisao Tanaka, two others resign over accounting scandal).

Toshiba, whose businesses presence spans a wide range of sectors from home electronics to nuclear power stations, this year sold its 4.6-per cent stake in Finnish elevator maker Kone Oyj for $946 million (Toshiba sells 4.6% stake in Finnish elevator maker Kone Oyj for $946 mn amid accounting scandal).

Sony, which is already a leader in the global image sensor market with a 40-per cent share, would become a dominant player with the acquisition and be on a better footing against a rival like Samsung.

It has already this year expanded its image sensor plants in Nagasaki and Yamagata at a cost of more than $1.2 billion. Its customers include China's Xiaomi, Apple, and India's Micromax Informatix Ltd.