The last few years have been rough for several long-established electronics companies. Sony has proven time and again that persevering in the new marketplace can be difficult. They spun off their computer division to a standalone company, Vaio. They have also spun off their semiconductor business into wholly-owned subsidiary Sony Semiconductor.
Another company that has had trouble finding its feet in recent years is Toshiba. While some of their business units are highly profitable, it turns out that several of their units, including a lot of overlap with Sony, are not. As a result, Toshiba is making similar moves to Sony, only a year or so behind.
To begin the recovery process, Toshiba has sold its semiconductor business to the newfound Sony Semiconductor. Announced back in October, the acquisition was completed this week for $154 million, and includes all assets of the division. Toshiba said,
(We will) transfer semiconductor fabrication facilities, equipment and related assets of Toshiba's 300mm wafer production line, mainly located at its Oita Operations facility, to Sony Semiconductor as part of the deal.
Following the sale of its semiconductor business, Toshiba is reported to also be in talks to spin-off its computer division. If the rumors are true, then Toshiba's computer division would join the Vaio computer company, making it a larger company with extra assets. It could make it capable of competing with the larger, more successful companies, like HP, Lenovo and Samsung.
Adding to the rumor, Fujitsu is also rumored to be joining the Vaio consortium, marking another computer company throwing in the towel. More importantly, it shows extra support for the company who will be trying to slay Goliath.