Sony Group Corp. has enlisted investment bankers to explore divesting its cellular chipset unit, signaling the Japanese conglomerate’s continued retreat from hardware businesses that fail to match its entertainment division’s profitability, Reuters reported.
Sony Semiconductor Israel, which generates about $80 million in annual recurring revenue, could fetch close to $300 million, according to people familiar with the matter. The unit, previously known as Altair Semiconductor before Sony’s 2016 acquisition for $212 million, specializes in chips for connected devices including wearables and smart meters.
The potential sale reflects Sony’s strategic pivot toward higher-margin entertainment segments. Gaming, movies and music now account for roughly 60% of the company’s total profit, making peripheral hardware divisions increasingly expendable.
Sony’s broader portfolio reshaping includes plans to spin off its financial services arm through a direct listing later this year. The company has also indicated it’s considering options for its larger semiconductor division, including bringing in investment partners or adopting a fab-light strategy.
The Israeli operation’s modest revenue contribution — representing a fraction of Sony’s overall semiconductor business — makes it an obvious candidate for divestiture. Financial sponsors and semiconductor industry players are expected to show interest, though the early-stage discussions may not result in a transaction.
The move underscores how even profitable divisions can become strategic liabilities when they dilute focus from core growth drivers.
