Toshiba to sell image sensor business to Sony

Toshiba Corp said on Wednesday that it would sell its image sensor business to Sony Corp and overhaul its unprofitable semiconductor businesses as it tries to recover from a $1.3 billion accounting scandal.

Toshiba said it would sell its image sensor manufacturing plant in Oita, southern Japan, to Sony by the end of the fiscal year for an undisclosed amount and pull out of the sensor business. It would also withdraw from the white LED business, part of its semiconductor division, it said.

The moves were the first restructuring steps announced by the company since revelations earlier this year that it overstated earnings in a wide range of businesses including chips, TVs and PCs over seven years.