Nuvoton Technology Corp’s (新唐科技) announcement yesterday that it is buying Panasonic Semiconductor Solutions Co Ltd (PSCS) marks the end of Japanese electronics giant Panasonic Corp’s involvement in the semiconductor business.
The Hsinchu-based microcontrollers maker said it would pay US$250 million in an all-cash deal for Kyoto, Japan-based PSCS, which supplies semiconductor devices and solutions with products that focus on sensing, microcontroller and component technologies.
The deal is expected to close by June next year and obtain approvals from both national and regional regulators, it said.
Nuvoton, which is a subsidiary of memorychip maker Winbond Electronics Corp (華邦電子), said the acquisition of PSCS would generate greater value for the customers and shareholders of both companies, while increasing its presence in the global semiconductor industry through greater scale and volume of semiconductor solutions.
“We believe it would broaden the company’s distribution channels and customer base by exploiting PSCS’ abundant resources in research and development, as well as its large pool of talent,” Nuvoton spokeswoman Jessica Huang (黃求己) told a news conference in Taipei.
There are no plans to cut jobs and Nuvoton would integrate PSCS’ more than 2,000 employees, she said.
Nuvoton would also obtain the operating assets of Panasonic Semiconductor Solutions (Suzhou) Co Ltd, such as semiconductor equipment and warehouses; Panasonic Industrial Devices Semiconductor Asia’s assets, liabilities, contracts and other operating assets; and a 49 percent stake in TowerJazz Panasonic Semiconductor Co Ltd, a joint venture between Panasonic and Israel’s Tower Semiconductor Ltd.
PSCS booked an operating loss of ￥23.5 billion (US$214.5 million) for the fiscal year that ended in March, the Nikkei reported.
Nuvoton, with a paid-in capital of NT$2.88 billion (US$94.41million), reported net profit of NT$390.14 million in the first three quarters of this year on revenue of NT$7.58 billion.
Kadoma City, Japan-based Panasonic’s move to sell its semiconductor unit to Nuvoton came after it revealed a three-year-plan to exit the semiconductor business earlier this year.
It has faced rising competition in the semiconductor business from Taiwanese and South Korean rivals, which has been aggravated by a US-China trade spat.
Panasonic sold part of PSCS’ diode and transistor business to Kyoto, Japan-based Rohm Semiconductor Co Ltd in April.
Panasonic president Kazuhiro Tsuga earlier this month said the company would “eradicate” all continuously loss-making businesses by the fiscal year that ends in March 2022, including the production of LCD panels by 2021, while focusing on sectors such as batteries and other auto equipment, the Japan Times reported.
Additional reporting by AFP
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to