Sony has announced that it will spin off its semiconductor operations into a new company called Sony Semiconductor Solutions. While the vendor's mobile and TV efforts have failed to produce any profits of late, the image sensor business is Sony's most profitable division, with its offerings used in several high-end smartphones available today.
Sony mentions that the move will allow the semiconductor division to remain competitive in this segment:
The aim of these measures is to ensure clearly attributable accountability and responsibility from the perspective of shareholders, management policies with an emphasis on sustainable profit generation, and the acceleration of decision-making processes and reinforcement of business competitiveness. The decision to establish Sony Semiconductor Solutions forms part of this strategy.
Under the restructuring, the divisions that handle semiconductor manufacturing and design, Sony Semiconductor Corporation and Sony LSI Design, will become subsidiaries of the newly formed company.
As mid-range devices increasingly switch to Sony sensors, the company has announced that it will invest a further 45 billion yen ($374 million) this year to increase production capacity. The business unit will also expand into the automotive segment in the near future.