Sony May Sell Chipset Business as It Doubles Down on Entertainment Profits

Sony is a brand many are familiar with when it comes to consumer-facing products. We’re talking about TVs, video game consoles, headphones, cameras, smartphones, and more. But did you know that Sony also has a B2C business where it supplies chipsets to other companies? Turns out, that might not be for much longer. According to the rumors, Sony reportedly wants to sell its chipset business.

Sony wants to sell chipset business

According to a Reuters report, it cites three people familiar with the matter who claim that Sony is looking to sell its chipset business. Sony acquired Altair Semiconductor back in 2016 for $212 million. It was later rebranded to Sony Semiconductor Israel. The company makes cellular chipsets for devices like wearables, home appliances, and smart meters.

The report claims that due to Sony’s change of focus, the company is looking to offload some of its other divisions. The company’s chipset business is estimated to bring in about $80 million a year in annual recurring revenue. If it were to sell it, the company would be valued at around $300 million.

Semiconductors are a hot business. These chipsets are used in all sorts of products these days, including our phones, tablets, and even computers. So, why would Sony give up on it? Like we said, Sony is shifting its focus. The company’s games, movies, and music is said to account for 60% of its profit in 2024. This could indicate that the company wants to double down on those products and not spend as much of its resources on other areas of business.

Plus, in the chipset market, Sony has to go up against giants like Qualcomm, which already dominates the landscape. It might simply be better for them to bow out and focus on areas it already does well in.

Sony’s shrinking presence in the mobile space

At one point in time, Sony was one of the major players in the mobile space. The company’s Xperia phones were extremely popular during the early days of Android. However, over time, Samsung began to steal a larger slice of the pie. Chinese OEMs with their budget phones also started to gain prominence. 

This left Sony in an awkward position. Other smartphone makers like LG have exited the market. However, for whatever reason, Sony has stubbornly stayed. We’re not sure if the company ever plans to call it quits in the smartphone business, but maybe selling off its chipset division could be a step towards that.