Sony May Spin-Off Its Image Sensor Business

Sony might be looking to spin off its semiconductor business, Sony Semiconductor Solutions (SSS), as an independent company, according to a Bloomberg report citing anonymous insiders. The move could value the unit at up to ¥7 trillion (about $49.2 billion), with Sony possibly retaining a minority stake. But Sony quickly responded, calling the report “speculation” and saying there are no specific plans in place—yet.

SSS has played a major role in Sony’s success, especially through image sensors used in smartphones and mirrorless cameras. However, margins have shrunk from a peak of 25% to just over 10%, with the business now facing steep competition from China and rising costs. Internally, leadership at SSS recently shifted, with Shinji Sashida stepping in as President and CEO to lead the group through what Sony describes as a time of “unprecedented transformation.”

While photographers know SSS for its camera sensors—including the cutting-edge global shutter in the Sony a9 III—the division also handles display tech, semiconductor lasers, and sensors for mobile phones. With the broader Sony Group focusing more on entertainment and gaming, spinning off semiconductors could help streamline operations and give the unit room to adapt—or compete—on its own.