Panasonic has just reported that it is selling its semiconductor division to a midsize Taiwanese company. The reason is that the company has been suffering consecutive losses in the segment. However, the US vs China trade war put the last nail in the coffin. The company entered the market back in 1952. Eventually, it has become the top chip manufacturer in the 1980s and 1990’s but now it struggles to control all the losses.
Moreover, the company has reported an operating loss of approximately $215 million for the last fiscal year. With the US vs China trade war, Panasonic has been struggling to recoup losses. Besides, it has to overcome the low demand for products in the semiconductor segment. The semiconductor chipmaker made a variety of chips that ranges from Micro-Controllers, NFC tags, Image Sensors and more.
Panasonic’s former division is now under the arms of Nuvoton. It’s a subsidiary of Taiwanese specialty memory chip maker Winbond, it makes microcontrollers, controller, and audio and power-related chips. Panasonic also took the opportunity to report a 27% drop in operating profit, reducing to almost 300 Billion Yen. Therefore, the company is also in the verge of leaving LCD market in 2021. This will be another desperate move to end its loss-making business.