Struggling electronics maker JVC, part of the Matsushita empire, agreed yesterday on a capital tie-up with fellow Japanese high-tech firm Kenwood Corp leading to a merger.
Matsushita, best known for the Panasonic brand, will slash its holding in JVC, which will immediately team up with Kenwood to expand in areas such as car stereo systems.
JVC -- Victor Co of Japan -- was the pioneer of VHS video recorders a generation ago but has recently struggled in an increasingly competitive electronics market.
Under the plan, JVC will issue a total of ?35 billion (US$290 million) worth of new shares to Kenwood and investment firm Sparx Group Co, Kenwood's top shareholder, the companies said in a statement.
"On the condition that the two companies' management remain stable, JVC and Kenwood are beginning to look at management integration on an equal footing at the earliest time," the companies said.
HOLDING COMPANY
They plan to set up a new holding company which will fully control the two firms, they said.
With the issue of new shares, Kenwood will control 17 percent of JVC while Sparx Group will own 12.8 percent, the companies said.
The shareholding of JVC's parent firm Matsushita Electric Industrial Co will decline from 52.4 percent to 36.8 percent but it will remain the biggest shareholder, they said.
Founded in 1927, JVC was originally a subsidiary of the US record company Victor, but cut those ties during World War II. It continues to use Victor's symbol of the dog Nipper listening to his master's voice over a gramophone in Japan, but is not allowed to do so overseas.
JVC's performance has been a drag on otherwise profitable Matsushita, the world's largest maker of consumer electronics.
MATSUSHITA FORECAST
Matsushita said yesterday it had cut its forecast of net profit by 2 percent to ?246 billion in the year to next March due to JVC's stagnant performance.
JVC separately announced its net loss swelled to ?13 billion for the first quarter to last month from ?Y3.4 billion a year earlier, while revenue fell 9.7 percent to ?159.03 billion.
JVC reported an operating loss of ?6.30 billion, compared to ?1.9 billion a year earlier. The company said the losses were mainly due to a slump in sales of flat screen TVs and audio equipment.
JVC also downgraded its forecast for the full year to next March, seeing a net loss of ?17.2 billion and operating profit of ?8.1 billion on revenue of ?740 billion.
It had earlier projected a net loss of ?10.5 billion and operating profit of 15 billion on revenue of ?760 billion.
Nvidia Corp yesterday unveiled its new high-speed interconnect technology, NVLink Fusion, with Taiwanese application-specific IC (ASIC) designers Alchip Technologies Ltd (世芯) and MediaTek Inc (聯發科) among the first to adopt the technology to help build semi-custom artificial intelligence (AI) infrastructure for hyperscalers. Nvidia has opened its technology to outside users, as hyperscalers and cloud service providers are building their own cost-effective AI chips, or accelerators, used in AI servers by leveraging ASIC firms’ designing capabilities to reduce their dependence on Nvidia. Previously, NVLink technology was only available for Nvidia’s own AI platform. “NVLink Fusion opens Nvidia’s AI platform and rich ecosystem for
WARNING: From Jan. 1 last year to the end of last month, 89 Taiwanese have gone missing or been detained in China, the MAC said, urging people to carefully consider travel to China Lax enforcement had made virtually moot regulations banning civil servants from making unauthorized visits to China, the Control Yuan said yesterday. Several agencies allowed personnel to travel to China after they submitted explanations for the trip written using artificial intelligence or provided no reason at all, the Control Yuan said in a statement, following an investigation headed by Control Yuan member Lin Wen-cheng (林文程). The probe identified 318 civil servants who traveled to China without permission in the past 10 years, but the true number could be close to 1,000, the Control Yuan said. The public employees investigated were not engaged in national
CAUSE AND EFFECT: China’s policies prompted the US to increase its presence in the Indo-Pacific, and Beijing should consider if this outcome is in its best interests, Lai said China has been escalating its military and political pressure on Taiwan for many years, but should reflect on this strategy and think about what is really in its best interest, President William Lai (賴清德) said. Lai made the remark in a YouTube interview with Mindi World News that was broadcast on Saturday, ahead of the first anniversary of his presidential inauguration tomorrow. The US has clearly stated that China is its biggest challenge and threat, with US President Donald Trump and US Secretary of Defense Pete Hegseth repeatedly saying that the US should increase its forces in the Indo-Pacific region
ALL TOGETHER: Only by including Taiwan can the WHA fully exemplify its commitment to ‘One World for Health,’ the representative offices of eight nations in Taiwan said The representative offices in Taiwan of eight nations yesterday issued a joint statement reiterating their support for Taiwan’s meaningful engagement with the WHO and for Taipei’s participation as an observer at the World Health Assembly (WHA). The joint statement came as Taiwan has not received an invitation to this year’s WHA, which started yesterday and runs until Tuesday next week. This year’s meeting of the decisionmaking body of the WHO in Geneva, Switzerland, would be the ninth consecutive year Taiwan has been excluded. The eight offices, which reaffirmed their support for Taiwan, are the British Office Taipei, the Australian Office Taipei, the