Sony Group is contemplating spinning off its Semiconductor division into a separate entity, potentially distributing most of the business to shareholders while retaining a minority stake. This decision could come as soon as this year, influenced by market volatility and suggestions from billionaire investor Dan Loeb to enhance shareholder value. The semiconductor division, which generates significant sales from camera sensors for major smartphone brands, has experienced a growth decline from 25% to just over 10%. Meanwhile, Sony’s gaming and music segments have seen substantial profit increases, with operating income growth of 37% and 28%, respectively.
According to Bloomberg, Sony Group may separate its Semiconductor division into an independent business entity. Sources familiar with the situation indicate that the Japanese company is contemplating distributing most of the chip business to shareholders while retaining a minority stake post-spinoff.
This transition might take place as early as this year, though discussions continue, particularly in light of market fluctuations due to US President Donald Trump’s tariffs.
Following billionaire investor Dan Loeb’s recommendation, Sony is considering spinning off certain parts of its business to enhance shareholder value by billions. While the company resisted this notion for many years, it began to shift its stance in 2020 when it divested its US operations.
The semiconductor division provides camera sensors for leading smartphone manufacturers, including Apple, Google, and Xiaomi. Last fiscal year, it generated approximately JPY 1.7 trillion ($12 billion) in sales, but it remains uncertain whether the entire unit will be established as a new company.
Bloomberg noted that the imaging and sensing sectors have seen a decline in growth, dropping from 25% to just above 10%. Conversely, Sony’s gaming and music divisions have experienced significant profit growth, boasting operating income increases of 37% in gaming and 28% in music during the December quarter.
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