[News] Sony Reportedly Plans to Sell Communication Chip Division Valued at USD 300 Million

As per Reuters, sources state that Sony Group plans to sell its communication chip subsidiary, Sony Semiconductor Israel, in a deal valued at approximately USD 300 million. This move is part of Sony’s broader asset restructuring strategy aimed at further focusing on its core entertainment business.

Founded in 2016, Sony Semiconductor Israel was formerly known as Israeli startup Altair Semiconductor, which Sony acquired for USD 212 million. The subsidiary specializes in the development of low-power communication chips, widely used in smartwatches, wearable devices, and home IoT products. Sources indicate that the company generates around USD 80 million in annual revenue, and Sony is currently working with investment banks to initiate the formal sale process.

As market competition intensifies and profit margins shrink, Sony is gradually adjusting its semiconductor strategy to focus on the image sensor sector. In April 2024, Sony announced it was considering bringing in external investors or transitioning to a “fab-light” operational model to reduce capital expenditures and operational risks. The planned sale of its communications chip business aligns with this overall strategic direction, underscoring Sony’s clear focus on high-value-added image and entertainment applications.

Sony’s business focus has increasingly shifted toward the entertainment sector. By 2025, gaming, music, and film are expected to account for over 60% of Sony’s total revenue. The company is anticipated to further streamline its business structure in the second half of this year, although it has not confirmed plans to spin off and publicly list its financial services division.

As the global streaming market continues to grow, Sony has seen significant increases in both profits and visibility within the entertainment industry. Recently, Sony Pictures released successful titles such as Spider-Man: Across the Spider-Verse and K-POP: Demon Hunters, further cementing its position in the global entertainment technology landscape. The sale of the communication chip business is expected to enhance Sony’s synergy between content and technology, reinforcing its leadership in the entertainment domain.

(Photo credit: Sony)