By: Nadeemy Haded
Panasonic said it would sell its loss-making semiconductor unit to Taiwan's Novoton Technology for $ 250 million as Japan Electronics Corp. struggles to increase profits amid a shortage of growth engines.
The deal is part of Panasonic's plans to reduce fixed costs by 100 billion yen ($ 920 million) by the end of the fiscal year ending March 2022, by merging production sites and repairing loss-making activities.
Panasonic has already pulled out of most chipmaking activities, losing to smaller Korean and Taiwanese rivals, and shutting down or switching its industrial facilities to its joint venture with Israel's semiconductor tower.
Its semiconductor unit is currently focused on designing chips and power management sensors for smartphones, cars and security cameras. It sold part of the energy management chips activity to the Japanese Rum this month.
The latest sale includes the entire joint venture, in which Tower owns 51 percent, while the Panasonic chip unit owns 49 percent.
The project is managed by three Japanese chip-making facilities.
Panasonic said the deal would have little impact on its profits. The deal does not include the amount that Novoton will pay for Tower's stake in the joint venture.
Novoton, which split from Winbond Electronics in 2008, supplies chips used in electronics such as computers and audio products.
Source Sky News