TOKYO, Sept 17 (Reuters) - Sony Corp's said on Tuesday it concluded that retaining the chips business "is best strategy for enhancing Sony's corporate value over the long term," rejecting a call for a spin-off by Daniel Loeb's activist hedge fund Third Point LLC.

The conclusion is based on the fact that the chips business is "a crucial growth driver for Sony," the Japanese entertainment and electronics company said in a letter to shareholders. (Reporting by Makiko Yamazaki, editing by Louise Heavens)