It has been reported that the Sony Group may separate and list its semiconductor subsidiary, and attention is focused on the move as the image sensor business, which has the largest market share in the world, aims to make the next leap forward.
Sony Group considers spinoff of semiconductor subsidiary to go public, following financial business – sources
🟦Is Sony considering spinning off its image sensor business? IPO opens up new horizons for growth strategy
It has been reported that Sony Group (Sony Group) is considering spinning off (separating and listing) its semiconductor subsidiary “Sony Semiconductor Solutions (SSS),” which focuses on image sensors. According to the report, the method of “partial spinoff” is considered, in which the majority of the shares are released to the market while a certain percentage is retained by the parent company.
Sony’s image sensors are used in cutting-edge fields such as smartphones, cameras, and LiDAR for autonomous driving, and lead the industry with a global market share of over 50%. The spin-off will make it easier for SSS to raise funds and make investment decisions independently, and is intended to further accelerate technological development and market expansion.
🟦 Elimination of conglomerate discounts and tax incentives provide support
The reason why spin-offs are attracting attention is that they aim to eliminate the “conglomerate discount” that affects the corporate value of the entire Sony Group. Diversified companies tend not to fully reflect the profitability of their businesses in their stock prices, so by separating promising growth businesses, the aim is to have their value explicitly evaluated by the market.
In addition, the partial spin-off system introduced by the tax reform in fiscal 2023 allows companies to avoid corporate tax if certain conditions are met, making it an easy scheme for companies to implement. In fact, Sony used the same method for its financial subsidiary, Sony Financial Group, in 2023, and it has been pointed out that it may also be applied to the semiconductor business.
🟦 Summary
Reports that Sony Group is considering spinning off its image sensor business, which boasts a large global market share, are attracting attention as a move that could bring benefits in both improved capital efficiency and accelerated technological development.
If Sony Semiconductor Solutions is spun off, it could become Japan’s largest fabless semiconductor company. With its design capabilities and global market share as its weapons, its future capital strategy will be the focus of attention.
