Altair Semiconductor has completed its spinoff from Sony Semiconductor Solutions Corporation and closed an initial funding round of $50 million led by Pitango Group, the company announced on 27 April. Sony will retain a minority stake in the newly independent firm.

Altair, headquartered in Hod Hasharon, Israel, is a supplier of cellular IoT chipsets whose platforms power what the company describes as the largest share of the world’s cellular smart meters. Its chips are deployed across smart cities, energy grids, logistics, vehicle asset trackers, and sports wearables.

Independence to accelerate 5G IoT roadmap

The spinoff is designed to give Altair greater operational agility as it pursues the transition from 4G to 5G IoT connectivity. The company has outlined a dedicated 5G eRedCap roadmap, with its next-generation ALT1550 modem currently in advanced silicon testing. The ALT1550 is positioned as a cost- and power-efficient platform built for device lifespans of up to 20 years.

Altair frames its connectivity technology as foundational to what it calls the “Physical AI” revolution — the integration of AI with physical devices such as industrial machines, robots, and next-generation wearables that require persistent, ultra-low-power cellular links to cloud infrastructure.

“This is an exciting new chapter for Altair. As an independent company, we can move faster and respond more flexibly to rapidly changing market dynamics. We are fully committed to leading the industry’s transition from 4G to 5G IoT.” — Nohik Semel, CEO, Altair Semiconductor

Investors back long-term IoT and AI connectivity play

Pitango Group, the lead investor, cited the convergence of physical device connectivity and AI transformation as the strategic rationale for the investment.

“We have known the Altair team for many years and are excited to partner with them at this pivotal moment where every physical device needs to be connected to enable the Physical AI transformation.” — Eyal Niv, Managing Partner, Pitango Group

Sony, which had wholly owned Altair since acquiring it in 2016, characterised its continued shareholding as a vote of confidence in Altair’s technology leadership in the IoT ecosystem. The transaction structure was not disclosed beyond the $50 million initial funding figure.

Altair’s existing product line includes the ALT1250 and ALT1350 platforms, among the more integrated LTE Cat-M and NB-IoT chipsets on the market. The company said it will continue to support its current customer base through the transition to independent operations.