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Sony is spinning off its image sensor business

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.

Source: Sony

Harish Jonnalagadda
Harish Jonnalagadda

Harish Jonnalagadda is a Senior Editor overseeing Asia at Android Central. He leads the site's coverage of Chinese phone brands, contributing to reviews, features, and buying guides. He also writes about storage servers, audio products, and the semiconductor industry. Contact him on Twitter at @chunkynerd.

12 Comments
  • And so it begins Posted via the Android Central App
  • I'd say you are correct. I expect the whole thing to be parcelled up and sold off in the near future. Posted from a Nexus 6 via the Android Central App
  • I'm confused by this. Is the image sensor division, part of the semiconductor division? The article actually says nothing about spinning off the image sensor division if not. If they ARE spinning of the image sensor division, what on earth are they thinking?! Sony struggles to make a profit as a whole, so they're spinning off one of the few parts that actually DO make a profit? That seems incredibly stupid. Posted via the Android Central App
  • Agreed. All of what you said. I was thinking the same thing after reading the article.
  • Wait, I thought Sony Computer Entertainment is their most profitable... Have I been living under a rock all this while?
  • Pretty sure they took a massive hit with the initial PS3 launch. Posted via the Android Central App
  • Sony spinning off their most profitable division into... Sony? This article is a bit confusing. It sounds more like a restructuring than a spinning off of anything into a brand new separate entity. Posted via the Android Central App
  • into... Sony Semiconductor Solutions. Not Sony. The smartphone and TV line will be different from SSS. Makes sense
  • Confusing article dreaming of electric sheep
  • These companies operate as massive corporate entities with the name Sony being an umbrella name they share, but operate as really separate entities. So this change is probably quite massive it's not just a renaming of a department. Posted via the AC App from SM-N910F
  • Hopefully with this, everybody wins!
  • I thought Sony entertainment make the most money. Posted via the Android Central App on Moto X 2014/Moto G3/Moto G1/Lenovo Tab S8/ Lenovo Yoga 11 on $35 Cricket wireless plan.