July 14, 2025 /SemiMedia/ — Sony has laid off more than 100 employees at its semiconductor R&D center in Hod HaSharon, Israel, marking one of the company’s most significant cuts outside of its gaming division. The move is part of a broader global restructuring strategy targeting non-core operations.

The affected site, led by Nohik Semel, employs around 400 staff, meaning over a quarter of its workforce will be impacted. Industry observers say the scale of the layoffs reflects strategic shifts in Sony’s chip development focus, particularly in the Internet of Things (IoT) segment.

Sony established the Israel center following its 2016 acquisition of Altair Semiconductor for $212 million. Altair was known for its low-power LTE modem chips designed for IoT use cases such as smart gas and water meters.

By integrating Altair’s communication technology with its proprietary sensor platforms, Sony had aimed to develop next-generation cellular-connected modules for wearable and industrial IoT devices.

However, amid slowing growth in the IoT hardware sector and internal resource reallocation, the company’s decision to downsize casts uncertainty over the long-term direction of its cellular IoT ambitions. Whether Sony will continue investing in this segment remains to be seen.