Sony May Spin-Off Its Image Sensor Business as a Separate Company
Sony is reportedly investigating whether it should spin-off its semiconductor business, which would make Sony Semiconductor Solutions (SSS) an independent business entity.
Bloomberg reports, citing anonymous sources, that Sony may list its semiconductor business as soon as this year. Bloomberg adds that Sony could retain a minority stake in Sony Semiconductor Solutions following the corporate spin-off.
Sony could value its semiconductor segment at as much as ¥7 trillion, which is $49.2 billion at current exchange rates.
However, while the move is reportedly under discussion within Sony, the company poured cold water on the report.
“The article is based on speculation and there are no such specific plans,” a Sony spokesperson said.
Sony created Sony Semiconductor Solutions in 2016 in a move that, at the time, the company said help it strengthen its imaging device and industrial operations.
Any final plans inside Sony could be impacted by volatile global markets and the rapidly evolving tariffs situation in the United States.
Bloomberg characterizes Sony Semiconductor Solutions’ growth in recent years as having plateaued and that the segment, a wholly owned subsidiary of Sony Group, is contending with continually shrinking margins, increasing costs, and growing competition elsewhere, including in China.
Sony Semiconductor Solutions posted impressive operating profit margins of 25% at its peak, although this has dipped to slightly more than 10% in recent years.
The report adds that Sony Group is working diligently to streamline its business operations and put greater emphasis on its entertainment ventures. Sony’s gaming and music segments have performed much better, with significant growths in operating profits for each in recent quarters.
Sony Semiconductor Solutions realigned its Corporate Executive structure at the beginning of this month.
“Since our establishment as an independent business entity, we have expanded our operations primarily through image sensors for smartphones. The semiconductor industry now stands at the brink of unprecedented transformation. In order to achieve further growth, we must swiftly and adaptively navigate the rapid shifts in our environment,” said Terushi Shmizu, who served as Representative Director, President and CEO of SSS until April 1 and is now Director and Chairman.
“We decided that to reach the next level of growth amidst this period of transformation, we must embrace new challenges that transcend traditional boundaries. Shinji Sashida, who take over management from me, has built up trust both inside and outside the company by engaging with the semiconductor market and customers, particularly in the mobile sector. I expect him to utilize his extensive experience and leadership to lead our group management towards a new stage.”
Sashida, who moved from SSS Director, Executive Deputy President, to Representative Director, President, and CEO added, “As I take on the role of President and CEO of Sony Semiconductor Solutions, I am acutely aware of the immense responsibility that it entails, especially as the market for semiconductors continues to grow as a critical resource. Throughout its history, Sony’s semiconductor business has relentlessly pursued the creation of new experiential value for users through its devices. Going forward, I intend to work together with our employees around the world under this new management structure, so that we can deliver new Kando to even more people.”
While photographers are most familiar with Sony Semiconductor Solutions because of Sony’s interchangeable lens mirrorless cameras — and models from many competing camera makers — SSS also makes image sensors for many smartphones. The operation also develops and produces displays, semiconductor lasers, and more.
SSS has made significant technological advancements in recent years, including the 24.6-megapixel global shutter sensor in the groundbreaking Sony a9 III camera and a new 247-megapixel medium-format sensor unveiled last year.
Image credits: Sony
