Panasonic Plans To Sell Chipmaking Industry To Nuvoton Tech
On Thursday, chipmaker Panasonic proclaimed it would sell its loss-making semiconductor industry to Taiwan’s Nuvoton Technology.
Moreover, Nikkei has realized quitting an industry that first arrived in 1952. The firm also faces headwinds currently from the U.S.-China trade conflict.
The transaction will close a chapter in Japan’s transition. It will be from a chipmaking powerhouse in the 1980s and ’90s to a dealer of equipment and materials to soaring South Korean and Taiwanese performers.
Way back 1990, Panasonic’s chipmaking industry ranked among the world’s top 10 manufacturers by sales.
Now, the company is arranging to sell the entire Panasonic Semiconductor Solutions to midsize Taiwanese business. The buyer supplies the likes of HP, Dell, and Microsoft.
In addition, the chip unit manages development, production, and sales.
On the other side, there will be a forthcoming joint venture with Israel’s Tower Semiconductor.
Panasonic will be featured with three Japanese chipmaking services under TowerJazz Panasonic Semiconductor.
Panasonic’s Steps To Sell Some of The Operations
Recently this April, Panasonic was working to turn its chipmaking businesses around. This was when the firm announced the selling of some operations to Kyoto-based peer Rohm.
The industry also puts greater importance on automotive products such as chips designed to manage electric-car batteries. Moreover, it is the focus of the partnership with Tesla.
In March, Panasonic Semiconductor registered an operating decline of 23.5 billion yen ($215 million) for the fiscal year ended on sales of 92.2 billion yen.
Panasonic also had been making profitability in semiconductors as their top priority for this fiscal year.
On the flip side, it decided to drop off the business as the trade conflict plunge demand.
This fiscal year, Panasonic had a whole projected decline of 27% in operating profit to 300 billion yen.
The company further intends to exit the liquid crystal display business in 2021. This will be a portion of a stronger campaign to get rid of loss-making operations.
