Panasonic to sell chip unit to Nuvoton for $250m
Panasonic said it would sell its semiconductor unit to Taiwan’s Nuvoton Technology for $250.0m as it struggles to boost its profitability amid a lack of fresh growth drivers.
The deal includes the sale of the entire joint-venture with Israel’s Tower Semiconductor which is 51.0%-owned by Tower and 49.0% by Panasonic.
However, the transaction value excludes the amount Nuvoton would pay for Tower Semiconductor’s stake in the joint-venture, Reuters reported.
Management also said that the sale, which is part of Panasonic’s plans to cut its fixed costs by $920.0m by the year ending in March 2022, would not have any significant impact on its earnings.
Panasonic has already divested most of its activities in the chip arena and shut down or shifted its manufacturing facilities to its joint-venture Tower as it struggles against rivals.
Its semiconductor unit was currently focused on designing power-management chips and sensors for smartphones, cars and security cameras.