Reuters is reporting that a Sony is in talks to sell its chip production facilities to Toshiba, according to "sources close to the matter." The 100 billion yen (about $870 million) deal is reportedly set to finish in a few months and will include the lines for Sony's PS3-powering Cell processor.

Does this mean Sony is giving up on its much-hyped computer-on-a-chip? Not likely -- Reuters says any deal would probably include a Sony/Toshiba joint venture to ensure a steady supply of Cells for Sony systems. The transfer of ownership would provide a cash influx for Sony and probably help Sony cut overhead costs related to staffing and upkeep at the plants.

The move isn't totally out of left field for Toshiba, which helped in the development of the Cell chip along with Sony and IBM and has expressed interest in using the Cell in non-gaming devices

This article was originally published on Joystiq.

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