Toshiba sells sensor unit to Sony

ToshibaToshiba has decided to sell its image sensor business to Sony as part of a cunning plan to restructure in the wake of its $1.3 billion accounting scandal.

The image sensor manufacturing plant in Oita, southern Japan will go to Sony by the end of the fiscal year through March. Tosh is giving up on the sensor business completely.

Sony will take on the sensor business’ 1,100 workers. The deal was worth around $166.15 million.

Toshiba also said it will withdraw from the white light-emitting diode (LED) business, part of its semiconductor division.

The moves amount to the first restructuring steps Toshiba has announced since it said earlier this year that it had overstated earnings in a wide range of businesses including chips, television sets and personal computers over seven years.

Sony gets to solidify its already dominant position in the industry. It already controls about 40 percent of the market for complementary metal-oxide semiconductor (CMOS) image sensors.