Panasonic Sells Stakes in Semiconductor Subsidiary and Joint Venture
Nuvoton, specializing in MCU manufacturing and wafer outsourcing.


Panasonic is withdrawing from the semiconductor business.

According to Japan's Nihon Keizai Shimbun, on the 28th, Panasonic decided to sell its semiconductor subsidiary, Panasonic Semiconductor Solutions, to Taiwan's Nuvoton Technology. It also decided to transfer its 49% stake in TowerJazz Panasonic Semiconductor, a joint venture with TowerJazz.

Panasonic started its semiconductor business in 1952 by establishing a joint venture with Philips. By expanding production facilities domestically and internationally and equipping its home appliances with its own semiconductors, the company ranked among the top 10 semiconductor companies in the world by revenue around the 1990s. However, it has continued to decline, including completely halting DRAM production in 1999.

Recently, Panasonic Semiconductor Solutions aimed to rebuild its business by focusing on the image sensor and automotive semiconductor markets, but recorded an operating loss of 23.5 billion yen in the 2018 fiscal year (April 2018–March 2019).

Panasonic decided to sell Panasonic Semiconductor Solutions because it could not guarantee a profit in operating income for fiscal year 2019 (April 2019–March 2020) due to sluggish demand caused by the U.S.-China trade dispute. Since Chairman Kazuhiro Tsuga took office in 2012, Panasonic has adhered to a policy of divesting from loss-making businesses. On the 22nd, the company also announced that it would divest its LCD panel business by 2021.

Meanwhile, Nuvoton, which acquired Panasonic's semiconductor division, focuses its main business on developing IC products used in analog and mixed-signal, MCU, and computer cloud applications. Possessing a wafer factory capable of producing custom analog, power management, and MCU products, it also offers wafer outsourcing services. With this acquisition, Nuvoton plans to strengthen its capabilities in automotive and industrial semiconductors.