Sony spins off Israeli chip unit, restoring Altair brand
The move follows Tokyo’s strategic refocus on core semiconductor lines. Altair will pursue 5G IoT growth with Sony as a main investor, with the move to include the lay off of several dozen employees.
Sony Israel is separating from Sony Corporation and will resume operations as an independent company under its original name, Altair Semiconductor, Calcalist has learned. The decision was made jointly by Sony Semiconductor Israel and Sony Corporation headquarters in Japan.
As part of the process, Sony Israel is expected to implement efficiency measures both in Israel and globally in the coming days. The move will include adjustments to its organizational structure to ensure long-term sustainability, with a few dozen employees expected to be laid off.
Sony will remain the main investor in the newly independent company, reaffirming its belief in the market for 5G IoT chips and its commitment to supporting customers worldwide.
The company declined to comment.
The transition marks a return to Altair’s roots. Sony originally acquired the Israeli chipmaker Altair Semiconductor in 2016 for approximately $212 million, integrating it into Sony’s semiconductor division.
However, Sony Semiconductor Corporation’s new management recently decided to refocus on its core strategic areas, prompting the spin-off. Together with the Israeli leadership, Sony reached a joint decision that the business would be better positioned as an independent company specializing in 5G Internet-of-Things connectivity.
Over the years, Sony Israel has built extensive technological infrastructure, global customer relationships, and a strong reputation in the IoT market. The split is expected to give the company greater managerial flexibility and allow for more agile operations.
CEO Nohik Semel and the existing management team will continue to lead the company. In addition, employees will receive a meaningful ownership stake, aligning the company’s future with its workforce.
Since its acquisition by Sony, Altair expanded its customer base, launched new initiatives such as the digitalization of logistics chains, and even incubated a spinoff named Sensos.
Today, Sony Semiconductor Israel, soon to again be Altair, is a leading global provider of cellular IoT connectivity, powering smart-city applications across Europe, the U.S., Japan, and other regions.
Earlier this year, Sony was exploring a sale of Sony Israel. According to Reuters, Sony Israel generates about $80 million in annual recurring revenue and was expected to be valued at close to $300 million in any deal.
The Israeli R&D center, based in Hod Hasharon, focuses on developing connectivity solutions for the Internet of Things (IoT) and smart sensors. It specializes in designing advanced chips for low-power cellular networks used in IoT applications, emphasizing ultra-low power consumption, compact size, and robust built-in security. These chips serve a wide variety of connected devices.
The Israeli team also develops digital signal processors (DSPs) that integrate artificial intelligence directly into sensors, as well as complete modems and system-on-chip (SoC) solutions that combine a modem, application processor, power management unit, and, in some cases, GPS and iSIM (embedded SIM), all within a single chip.
