Sony is considering withdrawing from research on the Cell microprocessor. The company has already decided to sell its production operation for the Cell chip, which is installed in the PlayStation 3.

Sony says it is in talks with IBM and Toshiba to review the project. "Given the fact that Sony plans to sell its production lines to Toshiba it would be unreasonable for to continue research on manufacturing technologies," a Sony spokesman said.

Instead, Sony's semiconductor business will focus mainly on manufacturing sensors used in high-vision handycams and digital cameras, Takizawa said.