Sony’s Strategic Move: Spinning Off Its Semiconductor Division

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Sony’s Semiconductor Division: A New Chapter

Sony Corporation is gearing up for a pivotal change by planning to spin off its semiconductor division, known as Sony Semiconductor Solutions. According to a report by Bloomberg, the company aims to establish this division as a separate entity, potentially distributing the majority of the chip business to shareholders while Sony retains a minority stake. This strategic move could unfold as early as this year, although market volatility—particularly influenced by U.S. President Donald Trump’s tariffs—might impact the timing.

The decision reflects Sony’s shift toward implementing the suggestions of billionaire investor Dan Loeb, who proposes that such a separation could unlock significant value for shareholders. Despite years of resistance to this idea, Sony has already taken steps in this direction by selling its U.S. operations in 2020.

The Role of Sony’s Semiconductor Division

The semiconductor division is instrumental in producing camera sensors for leading smartphone manufacturers including Apple, Google, and Xiaomi. Last fiscal year, this division reported sales of approximately 1.7 trillion Japanese yen ($12 billion). However, the specifics of whether the entire unit will spin off into an independent company remain uncertain.

Despite a notable decline in the growth rate of Sony’s imaging and sensing business—from 25% down to 10%—the company has experienced strong growth in other sectors. In the last quarter of 2024, Sony’s gaming and music divisions showed impressive performance, with operating income climbing by 37% in gaming and 28% in music.