As the sensor market shows signs of slowing following a decline in smartphone sales, a report speculates that Sony could create a separate company for its imaging sensor division. An anonymous tipster told Bloomberg that the company was considering spinning off its sensor business.
Sony responded by saying that the company has no concrete plans to do so and that the information was based on speculation. But while the report does not contain any concrete plans, the rumors draw attention to a shift in the industry as smartphone sales – a key destination for many Sony image sensors – slump while AI drives demand for chips.
For example, the speculation comes as industry shifts have smaller companies like SK Hynix leaving the sensor industry entirely to focus on making chips for AI. Analysts suggested that SK Hynix wasn’t able to compete with Sony Semiconductor and Samsung Electronics. Sony, however, is the biggest player in the imaging sensor market with 45 percent of the global share, followed by Samsung with 19 percent.
In Sony’s most recent quarterly financial report, the imaging and sensing division reported flat sales year-over-year, with sales declining due to reduced demand for smartphones but a positive impact from foreign exchange rates.
While Sony has labeled the report speculation, analysts suggest that such a move could potentially benefit both the larger Sony Corporation and the sensor division. The report hints that a smaller sensor company, rather than a division of a larger company, could have more flexibility. The analysts also indicated that a spin-off could allow the sensor segment to make faster decisions and have more flexibility.
The growth in AI has propelled some chipmakers to record high profits, such as Nvidia. While Nvidia's success is due in large part ot the Blackwell graphics processing unit, imaging sensors are also tied to the AI industry as a key component for computer vision.
Sony Semiconductor Solutions is currently a wholly owned subsidiary of Sony Group Corporation, after the company separated its semiconductors in 2016. But the report speculates that the parent company could create a separate listing for the chip business, giving stockholders shares in the new spinoff while retaining a majority of shares.
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