Sony Group is contemplating the possibility of spinning off its Semiconductor division into a separate business entity, as reported by Bloomberg. This move is being considered to potentially distribute the majority of the chip business to shareholders, while Sony would retain a minority stake post-spinoff.
The decision, which may come to fruition this year, is currently under deliberation due to market volatility following US President Donald Trump's tariffs. The move aligns with billionaire investor Dan Loeb's recommendation for Sony to spin off certain arms to increase shareholder value. Sony had initially resisted this idea but began showing flexibility in 2020 by selling its US operations.
The Semiconductor division primarily manufactures camera sensors used by leading smartphone companies like Apple, Google, and Xiaomi, generating approximately JPY 1.7 trillion ($12 billion) in sales last fiscal year. The possibility of splitting the entire unit into a new company is still uncertain.
Bloomberg's analysis revealed that the imaging and sensing businesses have experienced a decline in growth, decreasing from 25% to slightly over 10%. In contrast, Sony's gaming and music segments have been driving profit growth, with a 37% increase in operating income in games and 28% in music during the December quarter.
