Sony Considering Spin-Off of Its Semiconductor Unit

Sony started evaluating a spinoff of its chip business, a part of the imaging and sensing solutions division. The move could be finalized by the end of the year.

The company is looking to give shareholders a majority stake in Sony Semiconductor Solutions, with the group holding on to a minority interest. However, a Sony representative said that there are no concrete plans to separate the division.

Breaking off the unit could streamline decision-making and fundraising. Growth in the sector has slowed, with margins shrinking, costs rising, and competition intensifying. US tariffs are also adding uncertainty to the global smartphone and chip sectors.

Counterpoint Research director Marc Einstein said it makes sense to separate the chip unit from the group’s ailing businesses, such as pictures and parts of the imaging and sensing unit. He noted gaming and music have done well. Einstein added it also is in line with the government’s desire to rebuild the semiconductor industry.

The division’s sales in fiscal Q3, which ended on 31 December, fell 4.2% to JPY500.9 billion ($3.5 billion). In February, the company raised its revenue guidance for fiscal 2024, forecasting 11.9% growth to JPY1.8 trillion.