[News] Sony Reportedly Mulls Chip Division Spinoff and Listing to Strengthen Entertainment Focus

According to Bloomberg, sources indicate that Sony Group is weighing the spin-off of its semiconductor subsidiary, Sony Semiconductor Solutions, with an IPO potentially taking place as early as this year.

Another report from Bloomberg adds that the move would mark the PlayStation maker’s latest step in streamlining its operations and strengthening its focus on entertainment.

As noted by the report, sources indicate that Sony is exploring a “partial spin-off” structure, under which the parent company would retain a stake in the subsidiary.

The report highlights that Sony Group’s semiconductor business, which mainly produces image sensors for smartphones and other devices, holds a dominant share of the global market. However, maintaining its lead requires continuous, large-scale investment. The report suggests that spinning off the unit could make management and fundraising more flexible and responsive.

Meanwhile, the report also notes that due to ongoing tariff uncertainties in the semiconductor industry, the plans may not proceed as scheduled.

Spokespersons for Sony Group and Sony Semiconductor Solutions dismissed the claims as speculation, stating that no concrete plans have been made, as per the report.

In May last year, as mentioned by the report, Sony Group announced plans to partially spin off Sony Financial Group, which it had fully acquired in 2020. Under the plan, scheduled for October this year, Sony will distribute more than 80% of Sony Financial Group shares to shareholders via an in-kind dividend, reducing its ownership stake to below 20%.

As the report indicates, growth in Sony’s chip business — which produces industry-leading image sensors used in Apple and Xiaomi smartphones — has stalled amid weak global smartphone demand, with U.S. tariffs adding further pressure on the sector’s outlook. The semiconductor unit is also grappling with shrinking margins, rising costs, and intensifying competition from fast-advancing Chinese chipmakers.

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(Photo credit: Sony)