Sony in Talks to Sell Sony Semiconductor Israel

24 July, 2025

Reuters reports Sony is seeking $300 million for Sony Israel (formerly Altair), acquired in 2016. The unit makes cellular chips but has seen limited growth and no longer fits Sony’s strategy

Pictured above: Universal communication chip for IoT applications, developed by Sony Semiconductor Israel.

Sony is currently exploring the sale of its cellular chip division, Sony Semiconductor Israel, which was formed following its 2016 acquisition of the israeli star-up Altair Semiconductor for $212 million. According to an exclusive report from Reuters, the company has begun engaging with investment bankers to prepare for a possible sale. The unit develops LTE cellular chips, primarily for Internet of Things (IoT) applications, and employs several dozen people in Israel. Its annual revenues are estimated at around $80 million. Sources familiar with the matter told Reuters that the division’s expected valuation is approximately $300 million.

Despite Advanced Technology, It Failed to Become a Growth Engine

Sony’s acquisition of Altair was part of a broader strategy to expand its footprint in the semiconductor market and integrate smart cellular connectivity into its consumer devices. Altair had developed highly efficient chips designed for LTE networks used in smart meters, connected cameras, and M2M devices. It was one of the first companies in the world to offer fully commercialized solutions in this domain. However, it never matured into a significant growth driver.

Although the company introduced advanced LTE chip technology for the IoT sector, its revenues remained flat at roughly $80 million annually. Since its acquisition, it failed to significantly expand its market share or break into broader markets. As a result, it has remained a niche tech unit within a global corporate giant. In fact, Sony’s asking price for the division reflects a negative return on investment when adjusted for inflation.

Sony’s current CEO, Kenichiro Yoshida, has in recent years led a strategic refocusing of the corporation, emphasizing high-profit sectors and trimming operations with lower returns. Sony is now concentrating on areas where it holds a clear competitive edge—such as digital entertainment, gaming, music, and imaging sensors.

It is important to note that Sony operates a major semiconductor division beyond its Israeli arm. The main unit, Sony Semiconductor Solutions Corporation, specializes in CMOS image sensors, smartphone camera chips, and components for autonomous vehicles. This division is one of Sony’s most profitable and serves the company’s core markets. It operates independently from Sony Semiconductor Israel, which has seen no substantial growth and does not serve a strategic core market—making it, despite its technological achievements, a natural candidate for divestiture.

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Posted in: IoT , Mobile , News

Posted in tags: Altair , M&A , Sony

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