Sony to pull out of 32-nano production efforts

Sony is withdrawing from research related to the development of manufacturing technology that produces chips of 32 nanometers and below.

Sony is withdrawing from research related to the development of manufacturing technology that produces chips of 32 nanometers and below.

Excerpt from ZDNet:

Sony has been moving away from the production of advanced semiconductors, which involves heavy investment. The Tokyo-based electronics and entertainment company already said last month that it would sell to Toshiba its production facilities for making the Cell microprocessors and RSX graphic chips, both of which are used in its PlayStation 3 game console.

Work on actual R&D of 32-nanometer chips continues.

Are we looking at a mere strategic realignment by Sony to focus its core competencies? Or more ominously, are its action a reflection of the prohibitive costs of going to 32 nanometer and lower?