Sony Considers Sale of Cellular Chipset Unit Amid Entertainment Shift
- tech360.tv
- 2 days ago
- 1 min read
Sony Group is exploring the sale of its cellular chipset business as it pivots further toward its entertainment operations, according to three people familiar with the matter.
The Japanese conglomerate is working with investment bankers to sell Sony Semiconductor Israel, a unit that supplies chipsets for connected devices such as wearables, smart meters, and home appliances.
The sale process is in its early stages. The unit, formerly known as Altair Semiconductor, generates about USD 80 million in annual recurring revenue and could be valued at nearly USD 300 million, the sources said.
Sony acquired the Israel-based business in 2016 for USD 212 million.
The potential sale is expected to draw interest from both financial sponsors and players in the semiconductor industry, the sources added.
Sony declined to comment on the matter.
The move comes as Sony increases its focus on games, movies, and music, which accounted for more than 60% of its profit last year.
As part of its broader portfolio reshaping, Sony is also preparing for a partial spinoff and direct listing of its financial services arm later this year.
In April, Sony said it was reviewing options for its chips division, including bringing in investment partners or adopting a fab-light strategy.
Sony is exploring the sale of its cellular chipset unit, Sony Semiconductor Israel
The business could be valued at nearly USD 300 million
The unit supplies chipsets for wearables, smart meters, and home appliances
Source: REUTERS