Panasonic, a renowned Japanese electronic giant is selling its loss-making semiconductor business to a Taiwanese firm.
The major reason behind the loss in its secondary business is due to fierce competition from China and South Korea. This has brought to an end to the Panasonic subsidiary business which was seen as a global chip making powerhouse in the 1980s and 19990s.
The sale will be made to the Taiwanese firm known as Nuvoton in June. The amount that Panasonic will receive post-sales is $250 million, the spokeswoman for Panasonic said. The firm also said that the decision to exit was right because of the extreme competition from rival firm’s business expansion and massive investment.
According to the Nikkei business daily, the firm incurred the loss of $215 million from the semiconductor business for the fiscal year ended in March. The company has forecasted a 27 percent drop in operating profit this fiscal year to March 2020.