Sony Group Explores Sale of Cellular Chipset Unit for Connected Devices
NEW YORK: Sony Group is exploring the sale of its unit providing cellular chipsets for connected devices as it shifts focus to the entertainment sector, according to sources.
The Japanese technology and entertainment conglomerate is collaborating with investment bankers on selling Sony Semiconductor Israel, currently in the initial stages, with an estimated value of $300 million in a potential deal.
Having approximately $80 million in annual recurring revenue, the business is likely to attract interest from financial sponsors and semiconductor industry players.
Sony, declining to comment, acquired the business, formerly Altair Semiconductor, for $212 million in 2016. The sources requested anonymity since the matter is confidential.
Specializing in cellular chipsets for wearables, smart meters, and home appliances, Sony Semiconductor Israel plays a vital role in connected device technologies.
Sony has increasingly emphasized games, movies, and music, deriving over 60% of its profit from the entertainment sector last year. The company is planning a partial spinoff and direct listing of its financial services arm later this year as part of portfolio restructuring.
Recognized as a key image sensor manufacturer, Sony announced in April that it is exploring options for its chips division, including potential investment partnerships and a fab-light strategy.
