Panasonic to Withdraw from Chip Biz

Economy

Osaka, Nov. 28 (Jiji Press)--Panasonic Corp. <6752> plans to pull out of the semiconductor business, informed sources said Thursday.

The Japanese electronics maker will sell its chipmaking subsidiary, Panasonic Semiconductor Solutions Co., to a Taiwanese company, according to the sources.

The move is part of Panasonic's efforts to accelerate structural reforms of unprofitable businesses. The company announced its decision to stop producing liquid crystal display panels only on Nov. 21.

Panasonic's planned pullout from the chip business signals that Japanese semiconductor manufacturers, once having dominated markets around the world, are now facing severe business challenges.

END

[Copyright The Jiji Press, Ltd.]

Jiji Press