Sony Considers Selling Its Cellular Chipset Business: Sources

Sony Mulls Sale of Cellular Chipset Business to Focus on Entertainment Growth

Sony Group is reportedly exploring the sale of its cellular chipset unit, Sony Semiconductor Israel, as part of a broader strategic shift toward its high-growth entertainment segments, according to three sources familiar with the matter.

The Japanese tech and entertainment giant has engaged investment bankers to facilitate the potential sale, which is currently in the early stages. The unit, formerly known as Altair Semiconductor, specializes in cellular chipsets for connected devices like wearables, smart meters, and home appliances.

Sources estimate the division generates around $80 million in annual recurring revenue and could command a valuation close to $300 million in a potential deal. Interest is expected from both financial investors and players in the semiconductor industry.

Sony declined to comment on the development, and the individuals who provided the information requested anonymity due to the confidential nature of the discussions.

Sony acquired the chipset business in 2016 for $212 million. The move to divest comes as the company continues to realign its portfolio, with more than 60% of its profit in the past year stemming from entertainment sectors such as gaming, music, and film.

As part of its ongoing corporate strategy, Sony is also preparing for a partial spinoff and public listing of its financial services arm later this year.

In April, Sony said it was exploring strategic options for its broader semiconductor division, including seeking investment partners and possibly adopting a fab-light model—a shift away from in-house manufacturing to external foundries.

This potential sale reflects Sony’s intent to focus on core areas where it sees higher growth potential and stronger margins, particularly in content-driven businesses.