Sony has pulled out of a Japanese three-way pact to develop system chips with circuitry width of 45 nanometres. The company said that it has no plans to pursue further development of advanced microchips in a three-way pact with NEC Electronics and Toshiba.

Last year Sony, Toshiba and NEC Electronics agreed they would co-develop technologies to make sharing hefty costs and pooling technological expertise.

However now Sony says it is better off working with foreign rivals to develop the chips the Kyodo news agency said.

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