Panasonic decides to sell semiconductor business to Nuvoton Technology

Japan’s Panasonic Group has decided to pull out of its semiconductor business and sell its stake to Taiwan’s Nuvoton Technology. Panasonic’s semiconductor business continued to lose money, although also began to rebuild, but because of the U.S.-China trade friction problems and sales, so decided to abandon the semiconductor business. Japan’s Japan Economic News reported that in the past, Japan’s motor plants swept the world’s semiconductor market, and then continued to actively invest in South Korea, Taiwan forces to take market share and lose competitiveness.

Panasonic decides to sell semiconductor business to Xintang Technology

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In addition to selling Panasonic Semiconductor Solutions, which is based in Kyoto’s Changkata city and fully funded by Panasonic, which is responsible for the development, manufacture and sale of semiconductors, Panasonic is responsible for 49% of the company’s semiconductor company, Takata Semiconductors, Israel. TowerJazz’ 51 per cent joint venture, Tower Jazz Semiconductor, based in Toyama Prefecture, also decided to sell three factories in Toyama and Niigata prefectures that produce semiconductor products such as image sensors.

Panasonic in 1952 with the Netherlands Philip Company set up a joint venture company, into the semiconductor business, and in Japan and abroad to expand the plant, supply to Panasonic manufactured home appliances. Semiconductor turnover ranked in the top 10 in the world around 1990, but its performance deteriorated as power grew in Taiwan and South Korea.

Panasonic’s semiconductor plant was slowed in 2014 due to a sharp decline in sales of televisions and digital cameras, and in 2014 it converted three plants in Toyama and Niigata prefectures into co-operation with Takata and closed plants in Okama Prefecture and Kagoshima Prefecture. In April, it announced that it would sell part of its business to semiconductor maker Rohm (ROHM).

Panasonic recently became bullish on the popularity of the next generation of cars, and began to strengthen in-vehicle semiconductors used in the management of batteries for electric vehicles. But Panasonic Semiconductor Solutions, the core company of the semiconductor business, reported sales of 92.2 billion yen in fiscal 2018 (until March 2019) and a loss of 23.5 billion yen (about NT$6.65 billion). Originally intended this year (until March 2020) to make the semiconductor business from a loss to a profit, but by the U.S.-China trade war led to the impact of weak demand, black-letter has been hopeless, so had to decide to sell.

According to a survey by IC Insights, a Us-led market research firm, Japan’s semiconductor market accounted for 49% of the world’s market in 1990, but fell to 7% in 2018 due to slow investment judgment and restructuring. The names of Japanese manufacturers have disappeared from 2018 in the list of the world’s top 10 semiconductor companies published by Gartner, an AMERICAN IT research consultancy.

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