IBM, Sony Extend Cell Chip Development

The Cell processor has yet to make its long-awaited real-world debut, but the trio of companies that developed it are extending their alliance to develop new versions of the chip.

IBM(IBM Quote), Sony(SNE Quote) and Toshiba announced Thursday that they have renewed their semiconductor development collaboration for another five years, through 2010.

Under the agreement, the three companies will collaborate on future versions of the Cell microprocessor to be based on 32-nanometer processing technology. The current Cell relies on 90-nanometer technology and the existing road map for the processor goes only as far as 65 nanometers.

The collaboration also will explore the use of new types of semiconductor materials and other underlying technologies, which could lead to new chips and products beyond the Cell.

"We're looking for the next big processor breakthrough," said Lisa Su, vice president of IBM's Semiconductor Research and Development Center. The latest phase of the alliance will put a great deal of emphasis on early-stage research, whereas the previous effort focused more on development, said Su.

With the costs of developing and manufacturing cutting-edge chips becoming increasingly expensive, the companies' decision to continue pooling their resources is not altogether surprising. A number of high-tech firms have entered similar types of arrangements, including Intel(INTC Quote) and Micron(MU Quote) which in November announced a joint venture to develop flash memory chips dubbed IM Flash.

Yet the renewed commitment to the Cell comes before the chip has actually had a chance to prove its mettle in the real world. Sony's PlayStation 3 console, which will be the Cell's first -- and so far only -- major showcase, is not expected to be available until sometime this spring.

"So far, what IBM, Sony and Toshiba have produced is an interesting chip with a lot of promise, but at this point not much utility," says Insight64 analyst Nathan Brookwood.