IOT

Altair Semiconductor raises $50 million after completing spinoff from Sony

Altair Semiconductor Ltd. has returned to its roots as an independent company after its parent completed a strategic spinoff from Sony Semiconductor Solutions Corp. With the successful split, Altair has secured $50 million in funding from Pitango Group.

Sony Corp. will remain one of the largest shareholders in Altair, a decision that reflects its continued belief in the Israeli chipmaker’s long-term vision for physical artificial intelligence.

Altair Semiconductor specializes in designing low-powered and highly-integrated cellular “internet of things” chips such as Long Term Evolution CAT-M and NB-IoT modems and systems-on-chips. These are lightweight semiconductors primarily used to power machine-to-machine communications in devices such as sensors, smart meters, asset trackers, wearable gadgets and vehicle telematics. Its core products include the ALT1250 and ALT1350 SoCs, which are known for their low power consumption and long lifetimes.

Besides its IoT chips, Altair also develops digital signal processors that integrated AI directly into sensors. These will likely be paired with its new 5G-capable enhanced Reduced Capability modems such as the ALT1550, which is currently undergoing testing, with a view to powering next-generation robotics and machines that integrate onboard AI and require continuous connectivity.

The spinoff returns Altair to its roots. The chipmaker was originally acquired by Sony in 2016 for around $212 million before being integrated with that company’s chipmaking business. Since then, it has been known as Sony Semiconductor Israel.

Last year, Sony’s management decided to refocus on core strategic areas, prompting them to announce the plan to spin off Altair as an independent entity that specializes in 5G IoT connectivity. Then, earlier this year, Reuters reported that Sony was also considering a sale of Sony Semiconductor Israel, but today’s news seems to confirm that no such deal materialized. Reuters said it generated around $80 million in recurring revenue in 2025, and would have been valued at close to $300 in any transaction.

Altair will be led by its new Chief Executive Nohik Semel, who said he can’t wait to get started on the company’s new chapter. “As an independent company, we can move faster and respond more flexibly to rapidly changing market dynamics,” he said. “We are fully committed to leading the industry’s transition from 4G to 5G IoT.”

Image: Altair Semiconductor