According to Reuters' reports, Sony Semiconductor Israel, its communications equipment chip subsidiary, is a link to reorganize assets and further focus on the entertainment industry.
Sony Semiconductor Israel was formerly the newly-created Altair Semiconductor of Israel. It was purchased by Sony for US$212 billion in 2016. It focuses on the development of low-power communication chips, and is used in smart watches, wearable devices and household goods network equipment. Sources pointed out that the department received about $80 million in annual operations and the estimated transaction valuation is close to $300 million. Sony is currently working with investment banks to start the official sale process.
With the limited market competition and negative potential, Sony gradually adjusted its semiconductor strategy. Focusing on the image sensor field, it announced in April 2024 that it would consider introducing external investors or turning to the "fab-light" (light crystal plant) operation model to reduce capital expenditure and operation risks. The sale of this communication chip business is consistent with its overall strategic direction, reflecting that Sony is clearly focusing on high-value video and entertainment applications.
Sony's operational center of gravity has shifted significantly to the entertainment board. In 2023, the total number of gaming, music and film industries accounted for more than 60%, and it is expected to be split and listed in its financial services department in the second half of this year to simplify the business structure and strengthen the development of its main business.
As the global audio and video streaming market continues to grow, the profit and subjectivity of entertainment industries have been significantly improved. Sony Pictures recently launched works such as "Spider-Man: Traveling through the New Universe" and "K-POP Killer Witches" have performed well, further strengthening its position in the global entertainment technology industry. This inefficient asset score will help Sony strengthen its content and technology integration advantages and continuously expand its entertainment leadership position.
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