Sony Group is contemplating a spinoff of its semiconductor unit, a move that could see Sony Semiconductor Solutions become an independent entity as early as this year, reports Bloomberg.

The move, which is still under discussion, is part of the group’s strategy to streamline business operations and concentrate on core entertainment sector.

The potential spinoff would involve distributing most of Sony’s holding in the chip business to its shareholders while retaining a minority stake.

However, the volatility of the markets, exacerbated by US tariffs, could influence the final plan.

A Sony representative has opted not to comment on the matter, and a spokesperson for Sony Semiconductor also refrained from commenting on what they termed speculation, according to the report.

The semiconductor unit’s growth has plateaued, challenged by a global downturn in smartphone demand and the negative impact of US tariffs on the sector.

Sony Semiconductor Solutions, a wholly owned subsidiary of Sony Group, is grappling with shrinking margins, rising costs, and increasing competition from Chinese chipmakers.

Sony’s semiconductor unit offers a range of products, including image sensors, micro-displays, various large-scale integrations (LSIs), and semiconductor lasers.

These products are integral to numerous industrial fields and are built around Sony’s advanced imaging and sensing technologies.

In 2024, Sony Semiconductor Solutions and Swift Navigation, a provider of precise positioning technology, jointly developed a solution that integrates Swift’s Skylark Precise Positioning Service with Sony’s ultra-low-power CXD5610 GNSS chipset.

This partnership improves location accuracy, enabling advancements in safety, efficiency, and compliance across multiple sectors, including logistics, construction, and micromobility.