Panasonic to sell its chip unit to Taiwan's Nuvoton for $250 million (updated)

Nuvoton Technology

28/11/2019 07:51

(Recasts with company announcement)
    TOKYO, Nov 28(Reuters) - Panasonic Corp  6752.T  said it
would sell its loss-making semiconductor unit to Taiwan's
Nuvoton Technology Corp  4919.TW  for $250 million as the
Japanese electronics giant struggles to lift its profit amid a
lack of growth drivers.
    The sale is part of Panasonic's plans to cut fixed costs by
100 billion yen ($920 million) by the year ending in March 2022
by consolidating production sites and overhauling loss-making
businesses.  urn:newsml:reuters.com:*:nL3N2820CB
    Panasonic has already divested most of its chip business as
it lost to more nimble Korean and Taiwanese rivals, and has shut
down or shifted its manufacturing facilities to its joint
venture (JV) with Israel's Tower Semiconductor  TSEM.TA .
    Its semiconductor unit currently focuses on designing
power-management chips and sensors for smartphones, cars and
security cameras. It sold part of the power management chip
business to Japan's Rohm Co  6963.T  this month.
    The latest deal includes the sale of the entire JV, which is
owned 51% by Tower and 49% by the Panasonic chip unit. The JV
operates three Japanese chipmaking facilities. 
    Panasonic said the sale will not have any significant impact
on its earnings. The value of the deal that Panasonic has
announced excludes the amount Nuvoton would pay for Tower
Semiconductor's stake in the joint venture.
    Nuvoton, which was spun off from Winbond Electronics Corp
 2344.TW  in 2008, supplies chips for electronic devices
including computers and audio products.
    Panasonic has turned its focus away from low-margin consumer
electronics and bet on businesses that sell to automakers, as
well as to corporations such as factory-owners and firms that
automate processes.
    But the shift has failed to lift profit at a time when the
U.S.-China trade war has hit industrial purchases and output,
and the global car market is contracting.

 (Reporting by Makiko Yamazaki in Tokyo; Additional reporting by
Ben Blanchard in Taipei, Neha Malara in Bengaluru; Editing by
Himani Sarkar)
 ((Neha.Malara@thomsonreuters.com; within U.S.+1 646 223 8780;
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