Sony adopts new operational structure for its Devices segment

So far, Sony has focused on splitting off underperforming units, but it said more autonomy for the sensors business would help it remain competitive.

October 6 Japan’s Sony Corp said it will split off its semiconductors operations to bolster growth in devices such as image sensors, which have emerged as the company’s strongest products in recent years. Sony did the same thing with Bravia TVs a year ago, and the audio and video division started operating as a separate business entity at the start of this month. Sony mentioned that the new company will work “alongside existing Sony group companies” by April 1, 2016.

Terushi Shimizu, now Deputy President, Device Solutions Business Group, Sony Corporation, is expected to be appointed President, Sony Semiconductor Solutions.

Unfortunately, Sony’s new core businesses like gaming console, mobile, movies and music will have to become profitable by themselves and not to rely on other more lucrative divisions. Sony Semiconductor Corporation (President: Yasuhiro Ueda) and Sony LSI Design (President: Makoto Ishii), which cover Sony’s semiconductor manufacturing and design operations respectively, will become subsidiaries of Sony Semiconductor Solutions.

Currently, the devices division of Sony houses the image sensor business, battery and storage media arms.

In a statement today, Sony said the goal of these spin-offs is “to ensure clearly attributable accountability and responsibility from the perspective of shareholders, management policies with an emphasis on sustainable profit generation, and the acceleration of decision-making processes and reinforcement of business competitiveness”. Sony is aiming to complete the transfer in April.