The Japanese technology group Panasonic has reached an agreement to transfer its deficient microprocessor business to the Taiwanese company Nuvoton Technology in response to the growing competition and investment needs in the sector, affected by the trade war between the United States and China, thus abandoning a sector in which it was present since 1952.
The transaction, which has not transcended financial details, will not have any material impact on Panasonic’s annual accounts, which closes its fiscal year on March 31.
“The competitive environment surrounding the semiconductor business has become extremely difficult due to the aggressive expansion of competitors, huge investments in the area and the reorganization of the sector through mergers and acquisitions,” explained the Japanese multinational.
In addition to the transfer of shares to Nuvoton, the agreement also involves the transfer of certain production centers and inventories linked to the microchip business.
Panasonic Semiconductor recorded operating losses of 23.5 billion yen (195 million euros) in its last fiscal year with 92.2 billion yen (765 million euros) in sales.
Nuvoton Technology is controlled by the manufacturer of memory and audio chips Winbond, a provider of US technology manufacturers such as HP, Dell or Microsoft, according to Japanese newspaper Nikkei.
Source: dpa
