Sony President Kazuo Hirai is revamping the company's devices business in order to have a stronger focus on popular products such as its image sensors.
The revamp will involve the establishment of a new Sony Semiconductor Solutions Corporation which the company plans to begin its operations on April 1, 2016.
Sony explained that the spin-offs are being carried out in order 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."
With an aim to reach company targets of gaining its highest profit in a span of two decades, Hirai's revamping solution will allow managers to become more accountable and help speed up the decision-making process.
"The aim of these measures is to ensure clearly attributable accountability and responsibility from the perspective of shareholders," said the company in a statement.
Sony's devices unit makes up around 11 percent of the company's revenue in the June-ending quarter. Its profit gains had more than doubled to 30.3 billion yen ($250 million) because of increased sales brought by strong demand from both camera and mobile device making companies.
Some of these companies that regularly use the image sensors of Sony in their products include Nikon, Apple, Samsung, Xiaomi and Google for its new Nexus devices.
Sony is regarded as the market leader in the image sensor industry.
Under the new Sony Semiconductor Solutions Corporation, Sony is placing companies such as the Sony Semiconductor Corporation and Sony LSI Design as subsidiaries which will tackle the manufacturing and design part of the business.
Sony's creation of a company within a company strategy is not entirely new . Last year, it did the same thing with its Bravia TV division. Furthermore, the company's video and audio division had started to operate recently as a separate business entity.
Likewise, the remaining units in the devices segment, Sony Storage Media & Devices Corp and Sony Energy Devices Corp will continue to exist as separate companies and will handle the company's storage media operations and battery business respectively.
The newly created Sony Semiconductor Solutions Corporation will be under the leadership of Terushi Shimizu who is currently the devices segment's second-in-charge officer.
