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(Bloomberg) -- Sony Group Corp. is considering spinning off its semiconductor unit, a deal to streamline the PlayStation maker’s structure that could value the business at as much as ¥7 trillion ($49 billion).

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The spinoff and listing of Sony Semiconductor Solutions Corp. may occur as soon as this year, according to people familiar with the matter, asking not to be named discussing a private deal. Sony is considering distributing the bulk of its holding in the chip business to shareholders, and may retain a minority holding after the spinoff, one of the people said.

Deliberations are ongoing and the plan may change, especially given the volatility of markets in the wake of US President Donald Trump’s tariffs, one of the people said. “This article is based on speculation and there are no concrete plans,” representatives for Sony and the chip unit said in an email.

The company, which is also planning to spin off its financial arm, is following some of billionaire investor Dan Loeb’s playbook to unlock billions of dollars in shareholder value, years after resisting pressure from Loeb’s Third Point LLC for the company to do so. The fund sold its Sony American depository receipts in 2020.

Sony American depositary receipts climbed 1.2% to $25.28 on Monday, climbing to their highest level since March 31. Tokyo markets were shut on Tuesday for a holiday.

For the chip business, which makes industry-leading image sensors that go into cameras inside Apple Inc. and Xiaomi Corp. phones, a spinoff could give it greater flexibility to make faster business decisions and raise funds. Sony derived an estimated ¥1.7 trillion in sales last fiscal year from that division, though it’s unclear if the company intends to spin off the entire unit.

The business could be worth ¥5 trillion to ¥7 trillion in a spinoff, Bloomberg Intelligence analysts Masahiro Wakasugi and Takumi Okano wrote in a report. The overhaul could help Sony commit more resources to its entertainment business, while giving the chip unit more flexibility on investments, they wrote.

Its growth has stalled in recent years because of sluggish global smartphone demand — with US tariffs further weighing on the sector’s outlook. Sony’s semiconductor business also faces declining margins, higher costs and new competition from Chinese chipmakers who are catching up.