Panasonic is selling its semiconductor business, as it looks to cut down on costs and return to winning ways. According to a Reuters report, the Japanese electronics giant is selling its chip unit to the Taiwanese Nouvoton Technology Corp, for roughly $250 million.
Most of its manufacturing facilities have already either been shut down, or moved to the joint venture Panasonic has with the Israeli Tower Semiconductor. Now, the entire joint venture has been sold, including the 51 per cent owned by Tower, and the 49 per cent owned by Panasonic. The reports are saying that the $250 million refers only to Panasonic’s part.
The company said the selling of the unit will have almost no impact on its earnings.
Nuvoton expects the deal, which was made in an all-cash transaction, to be completed by June 2020, and hopes it will “increase Nuvoton’s presence in the global semiconductor industry through greater scale and volume of semiconductor solutions”.
Panasonic plans to cut down its costs by $920 million by March 2022.
Its semiconductor department was building power-management chips for smartphones, cars and security cameras. The power management part was sold to Rohm earlier this month.
Panasonic is expected to report a decline in sales and group net profit, for the first time since 2016. Analysts are expecting a drop in net profit by almost 30 per cent, compared to last year.