Sony Group is evaluating the potential sale of its cellular chipset business, Sony Semiconductor Israel, reported Reuters, citing three sources.

This divestment is part of the company’s strategy to focus on its entertainment operations.

The Japanese conglomerate is collaborating with investment bankers to explore the sale, which is still in its preliminary phase, the sources indicated.

The division, previously known as Altair Semiconductor, generates approximately $80m in annual recurring revenue and could be valued at around $300m in a potential transaction, they added.

The business, which supplies cellular chipsets for connected devices such as wearables, smart meters, and home appliances, is expected to draw interest from both financial investors and companies within the semiconductor sector, the sources told Reuters.

Sony declined to comment, and the sources spoke on condition of anonymity as the discussions are not public, the report noted.

Sony acquired the Israel-based unit in 2016 for $212m.

The company has increasingly prioritised its entertainment divisions, including games, movies, and music, which accounted for over 60% of its profit last year.

As part of its portfolio restructuring, Sony is also preparing for a partial spinoff and direct listing of its financial services arm later this year.

In April 2025, Bloomberg also reported that Sony is considering spinning off its semiconductor unit, potentially making Sony Semiconductor Solutions an independent entity this year.

The spinoff would involve distributing most of Sony’s chip business holdings to shareholders while retaining a minority stake.