Sony will partner with Infineon Technologies AG to develop chips rivaling those made by Samsung and Elpida Memory, the Japanese company said.

Sony Corporation and Qimonda AG, the Infineon unit, announce their venture in Tokyo to design so-called DRAM chips used in cameras and mobile phones.

According to the agreement, the 50:50 joint venture is intended to start with up to 30 specialists from Sony and Qimonda, bringing together their engineering expertise for the mutual benefit of both companies. Qreatic Design, which will be located in Tokyo, Japan, is planned to start operations by the end of the calendar year, subject to regulatory approvals and other closing conditions, and to substantially expand its capacities by hiring additional designers.

"We believe that the joint venture will support our future product design and solutions development and will further pave the way for our product diversification in non-PC applications," said Kin Wah Loh, President and CEO of Qimonda. "The set up of a new design center in Tokyo in cooperation with Sony is a strategic step to accelerate the worldwide R&D capabilities in that area. As Japan is an important and dynamic market for us and shows excellent R&D talents especially in the consumer and graphic area, we are glad to consistently expand our successful activities here."

"We identified the establishment of a joint venture with Qimonda, a leader in the DRAM field, as an ideal opportunity to extend the advanced DRAM design expertise with which Sony has continued to generate added value in finished products into new business areas," said Yutaka Nakagawa, Executive Deputy President, Officer in charge of Sony?s Semiconductor & Component Group (Semiconductor and Component).