Sony Corp. said Monday the Sony group of companies will spend 120 billion yen in fiscal 2004 to manufacture high-end semiconductors at production sites run by Sony Computer Entertainment Inc., IBM Corp. and Toshiba Corp.

Sony and Sony Computer Entertainment, the manufacturer of PlayStation 2 game consoles, have joined IBM and Toshiba in developing advanced, superfast semiconductors to process visual images for use in next-generation digital home appliances and game machines.

Of the 120 billion yen, 53 billion yen will be used to boost output at a plant owned by Sony Computer Entertainment in Isahaya, Nagasaki Prefecture, 36 billion yen will go to an IBM plant in New York state, and the remaining 31 billion yen will be invested in a Toshiba plant in Oita Prefecture.

The 120 billion yen capital investment is part of a 200 billion yen investment to be made over a three-year period that started last April, according to Sony.

The consumer electronics giant said the large-scale expenditure program will cover the development of high-performance microchips with 300-mm wafers. The chips are code-named "Cell."