Sony To Split Off Semiconductor Business

(RTTNews) - Sony Corp. (SON.L, SNE) said that it will establish Sony Semiconductor Solutions Corporation to further reinforce its semiconductor business, where image sensors are a primary area of focus. As part of its mid-term corporate strategy announced in February 2015, Sony outlined its intention to sequentially split out the business units currently within Sony Corporation and operate them alongside existing Sony Group companies.

R&D, business control, sales and other operations related to the semiconductor business, which are currently overseen by business groups and R&D units within Sony Corporation, will be transferred to Sony Semiconductor Solutions. The new company will aim to commence operations on April 1, 2016.

Sony has been implementing a series of measures to reinforce its Devices segment, a key growth driver for the Sony Group. As part of these measures, Sony will adopt a new operational structure for its Devices segment. The aim of this new structure is to enable each of the three main businesses within this segment, namely the semiconductor, battery and storage media businesses, to more rapidly adapt to their respective changing market environments and generate sustained growth. The Devices segment will continue to be overseen by Tomoyuki Suzuki, Executive Deputy President and Corporate Executive Officer, Sony Corporation.

Terushi Shimizu, currently Deputy President, Device Solutions Business Group, Sony Corporation, is expected to be appointed President, Sony Semiconductor Solutions. Sony Semiconductor Corporation (President: Yasuhiro Ueda) and Sony LSI Design Inc. (President: Makoto Ishii), which cover Sony's semiconductor manufacturing and design operations respectively, will become subsidiaries of Sony Semiconductor Solutions.

In the battery business, Sony Energy Devices Corporation (President: Yoshito Ezure) will continue to engage in integrated business and manufacturing operations.

In the storage media business, business functions currently located within Sony Corporation will be transferred to Sony Storage Media and Devices Corporation (President: Mitsunobu Saito), which currently engages in manufacturing. By integrating these business functions and manufacturing operations, the Company aims to ensure continued, stable profit generation. Sony also targets April 2016 for the completion of this transfer.