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October 6, 2015

Sony bets on image sensors with semiconductor spin-off

News: Divestment reflects shift away from flagging device business.

By Alexander Sword

Sony will split off its semiconductor operations into a separate company to capitalise on growth in its image sensor business.

The new division, called Sony Semiconductor Solutions Corporation, will take over R&D, business control, sales and other operations in the semiconductor division from Sony Corporation.

It is scheduled to commence operations on 1 April 2016, with Terushi Shimizu, Deputy President of the Device Solutions Business Group, expected to be appointed President.

The spin-off is part of a strategy outlined by Sony in February 2015, which will sequentially split business units within the corporation and operate them alongside existing Sony Group companies.

The divestment reflects a shift within Sony itself away from its struggling device business towards a great reliance on image sensors.

In the company’s Q1 2015 results, released in July, revenue in Sony’s Mobile Communications business decreased 16.3 percent year-on-year.

By contrast, sales in the devices business, including image sensors, were up 35.1 percent year-on-year.

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