Key Takeaways
- Altair Semiconductor has become an independent entity following a spinoff from Sony Semiconductor Solutions Corp.
- The company secured $50 million in funding and will focus on low-power IoT chips and AI integration.
- Nohik Semel is the new CEO, emphasizing agility in responding to market changes.
Altair Semiconductor’s New Era
Altair Semiconductor Ltd. has officially transitioned back to being an independent company after a strategic spinoff from Sony Semiconductor Solutions Corp. This move comes with a significant $50 million funding secured from the Pitango Group. Despite the spinoff, Sony Corp. will maintain a substantial ownership stake, indicating its confidence in Altair’s long-term strategy in physical artificial intelligence.
Altair specializes in designing low-powered and highly integrated cellular chips for the “internet of things” (IoT), including Long Term Evolution CAT-M and NB-IoT modems. These semiconductors facilitate machine-to-machine communications for devices like sensors, smart meters, asset trackers, wearable gadgets, and vehicle telematics. Key products include the ALT1250 and ALT1350 systems-on-chips (SoCs), recognized for their energy efficiency and longevity.
In addition to IoT chips, Altair is advancing digital signal processors that incorporate AI directly in sensors, expected to work in conjunction with the new 5G-capable ALT1550 modems currently under testing. This development will support next-gen robotics and machines that require constant connectivity and onboard AI capabilities.
The spinoff marks a return to Altair’s roots; it was initially acquired by Sony in 2016 for approximately $212 million and was integrated into the chipmaking division of Sony, operating as Sony Semiconductor Israel. Last year, Sony decided to refocus its efforts on core strategic areas, leading to the announcement of Altair’s transition to independent status, dedicated to enhancing 5G IoT connectivity.
Despite reports earlier this year suggesting the potential sale of Sony Semiconductor Israel, this recent news confirms that such a transaction did not occur. Altair is projected to generate around $80 million in recurring revenue by 2025, potentially valued at nearly $300 million in any sale discussions.
With the spinoff, Altair has appointed Nohik Semel as the new CEO. Semel expressed enthusiasm about the company’s future, stating, “As an independent company, we can move faster and respond more flexibly to rapidly changing market dynamics.” He affirmed Altair’s commitment to leading the industry’s transition from 4G to 5G IoT.
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