Sony Group might spin off the Semiconductor division into a separate business entity, Bloomberg reports. According to people familiar with the matter, the Japanese company is considering distributing the bulk of the chip business to shareholders, retaining a minority stake after the spinoff.
The change might occur as soon as this year, but deliberations are still ongoing, especially given the volatility of markets in the wake of US President Donald Trump’s tariffs.
Sony is following the suggestion of billionaire investor Dan Loeb to spin off some of its arms to bring billions of dollars in shareholder value. The Japanese company opposed the idea for many years, but it started to crack in 2020, when it sold its operations in the United States.
The semiconductor business is responsible for camera sensors used by major smartphone companies such as Apple, Google, and Xiaomi. The division saw about JPY 1.7 trillion ($12 billion) in sales last fiscal year, but we are yet to see whether the whole unit will be split into a new company.
Bloomberg pointed out that the imaging and sensing businesses have steadily declined from a 25% growth to just over 10%. In contrast, Sony’s gaming and music segments have led profit growth, with operating income of 37% in games and 28% in music in the December quarter.