Panasonic sells semiconductor business due to massive losses

Panasonic has reported that it is selling its loss making semiconductor division to a midsize Taiwanese company, with the US-China trade being the final reason for the business's failure. The company had entered the market in 1952, became the top chip manufacturer in 1980's and 1990's but now struggles to control its losses. The company reported an operating loss of approximately $215 million for the last fiscal year. Since the US-China Trade war, it has been struggling to recoup losses from the low demand of products in the semiconductor business. The semiconductor chipmaker made a variety of chips ranging from micro-controllers, NFC tags, image sensors, etc. The buyer is Nuvoton, a subsidiary of Taiwanese specialty memory chip maker Winbond, makes microcontrollers, controllers, and audio- and power-related chips. The company reported a 27% drop in operating profit too, reducing to almost 300 Billion Yen. As a result, Panasonic is also rumoured to exit the Liquid Crystal Display market in 2o21 as part of a broader campaign to end loss-making businesses. Source