July 25, 2025 /SemiMedia/ — Sony Group is considering a sale of its Israeli cellular chip subsidiary as part of a broader strategy to streamline its semiconductor operations and double down on its entertainment businesses, according to sources familiar with the matter.

The Japanese technology and media conglomerate is working with investment bankers on a potential divestment of Sony Semiconductor Israel, formerly known as Altair Semiconductor. The unit supplies cellular modem chips for smart meters, wearables, and connected appliances. It reportedly generates around $80 million in recurring annual revenue, with a potential valuation near $300 million. The deal is expected to attract interest from both financial sponsors and semiconductor industry players.

Sony acquired the business in 2016 for $212 million and integrated it into its semiconductor division. However, as Sony increases its focus on gaming, music, and film—sectors that contributed over 60% of its profits in fiscal 2024—the company is reassessing its non-core chip operations.

As part of its corporate portfolio restructuring, Sony also plans to spin off and list part of its financial services business later this year.

In April, Sony stated it was reviewing strategic options for its semiconductor division, including seeking investment partners or shifting to a fab-lite model. The potential sale of its IoT modem chip business aligns with this shift.

Meanwhile, Sony has initiated a large-scale layoff at its R&D center in Hod Hasharon, Israel, expected to impact over 100 of its roughly 400 employees. The site, led by Nohik Semel, has been central to the development of Sony’s cellular IoT chips. The layoffs are part of a global workforce reduction plan, which had previously focused on the company’s gaming segment, but the scale of this downsizing has drawn attention within the industry.