Sony Group (TYO:6758) is considering spinning off its semiconductor unit, potentially valued at up to 7 trillion yen ($49 billion), to streamline its structure, Bloomberg reported Monday, citing people familiar with the matter.

The spinoff, which could occur as soon as this year, may involve distributing most of the stake to shareholders while retaining a minority interest, according to the report.

The move would give the chip unit more flexibility amid challenges like declining margins and competition from Chinese chipmakers. Sony's semiconductor business, known for its image sensors, generated 1.7 trillion yen in sales last year, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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