Panasonic to sell its chip unit to Taiwan’s Nuvoton for $250 million


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Panasonic to sell its chip unit to Taiwan’s Nuvoton for $250 million

On Thursday, the 28th of November 2019, the Kadoma, Osaka-based Japanese multinational electronics corporation, Panasonic, had issued a statement saying that the electronics company’s management board had agreed to a sell-off of its money-draining semiconductor unit which had yet to post a profit over the first nine months of the year to Taiwan’s Nuvoton Technology Corp.

for a total of $250 million, as the Japan-based multinational electronics industry Goliath was scuffling to raise its operating profit outlook amid a strident lag in growth promoters. In point of fact, latest sell-off of Panasonic Corp.’s loss-making semiconductor business has been a part of the Osaka-based electronics corporation’s plan to slash fixed expenses by $920 million or 100 billion Japanese Yen by March 2022 through spinning off of production sites alongside an execution of a sweeping revamp of its loss-making businesses.

Besides, recent Panasonic move to sell its semiconductor business had been the latest of a string of divestments, as the company had already sold off a majority of its chipmaking business and either had shut down or shifted some of the manufacturing facilities to its Israeli JV partner Tower Semiconductor following a persistent course in losses in its semiconductor business amid stiffer competition from a number of more nimble Taiwanese and Korean rivals.