Sony May Sell Chipset Unit to Focus on Entertainment

Sony Group is reportedly exploring the sale of its cellular chipsets business as part of a broader strategic shift toward strengthening its entertainment segment.

Sources familiar with the matter revealed that the Japanese conglomerate has engaged investment bankers to oversee the potential divestment of Sony Semiconductor Israel, formerly known as Altair Semiconductor. This unit specializes in producing chipsets for connected devices such as wearables, smart appliances, and IoT applications. While the deal remains in the early stages, market watchers believe the business could be valued at around US$300 million, given its estimated US$80 million in annual recurring revenue.

Key Highlights

• Sony may divest its chipset unit to focus more on entertainment
• The business could fetch US$300 million with $80M annual revenue
• Interest expected from semiconductor firms and financial investors

Sony had acquired Altair Semiconductor in 2016 for approximately US$212 million, with the intent to bolster its Internet of Things (IoT) capabilities. However, with the entertainment business—spanning gaming, music, and movies—becoming increasingly central to Sony’s long-term growth plans, the company is now weighing options to streamline its portfolio and reallocate capital.

Industry insiders anticipate interest from both financial sponsors and global semiconductor players, particularly those looking to expand into the low-power, wide-area (LPWA) cellular IoT chipset market.

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While no final decision has been made, the potential sale aligns with Sony's evolving corporate focus and investor expectations for higher-margin, content-driven businesses.