‘Panasonic’ the electronic king of Japan announced, that it is withdrawing from the semiconductor business and selling its unprofitable subsidiary to the firm in Taiwan as it faces extreme competition from South Korea and China.
The chip-making business of Panasonic ranked 10 in the world by sales.
In the era of 1980 and 1990, Japan-based Panasonic was regarded as a chipmaking powerhouse as it was a major business icon of Japan.
The development, production, and sales of Panasonic will be handled by the Chip unit.
At the end of financial year in March, the registered operating losses were estimated to be 23.5 billion yen.
As predicted by Panasonic, there will be a 27% drop in operating profit up to 300 billion yen up to March 2020.
The Japanese corporation alleged, they are planning to bring a subsidiary of Panasonic Semiconductor Solutions to Taiwan’s Nuvoton. A spokeswoman of Panasonic told that the company would receive $250 million.
Panasonic alleged, it was the “best way” in the face of “extremely intense competition with rival firms” business expansion and massive investment.”
By 2021, the production of liquid crystal display panel will end against the Chinese and South Korean manufacturers, Panasonic said last week.
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