Panasonic to sell stakes in chip plants to Israel's Tower

Dec 20, 2013
Panasonic introduces its new tablet personal computer 'Toughpad 4K UT-MB5' at a press conference in Tokyo on September 6, 2013

Japan's Panasonic on Friday announced plans to sell majority stakes in its three domestic semiconductor plants to an Israeli chipmaker in a bid to reduce its loss-making operations.

The electronics giant will jointly set up a new firm with Tower Semiconductor to run Panasonic's three plants—Uozu, Tonami and Arai—starting in April next year, Panasonic said in a statement after markets closed Friday.

The new firm will be owned 51 percent by the Israeli company, known for its "TowerJazz" brand, and the remaining 49 percent by Panasonic.

Separately, Panasonic said it would close another domestic chip plant in Okayama, western Japan, in March next year.

"But we have no plan to lay off our employees following the latest change in our businesses," a company spokeswoman said. Panasonic is undergoing a huge restructuring aimed at repairing its balance sheet after two consecutive years of record losses.

It suffered a 20.5 billion operating loss in semiconductor businesses for the year to March 2013.

It has already decided to pull out of the consumer smartphone business in Japan and plasma televisions.

The firm recently doubled its net profit forecast for the current fiscal year through March to 100 billion yen ($985 million).

Panasonic displays its Viera LCD and OLED 4K television sets at the Ceatec electronics trade show in Chiba, Tokyo on October 1, 2013

Panasonic shares rose 0.16 percent to 1,215 yen on Friday.

Explore further: Fujitsu says first-half net loss shrinks to 97.6 mn

add to favorites email to friend print save as pdf

Related Stories

Panasonic to abandon consumer smartphones

Sep 26, 2013

Japanese electronic giant Panasonic said Thursday it will abandon research into new smartphones for retail consumers at home as it struggles to make inroads in a sector dominated by Apple and Samsung.

Panasonic reports big loss but forecasts profit (Update)

May 10, 2013

Japanese consumer electronics giant Panasonic Corp. on Friday reported a near-record net loss of 754 billion yen ($7.5 billion) for the fiscal year through March due to restructuring costs and slumping sales, ...

Panasonic's April-June net profit up by 8 fold (Update)

Jul 31, 2013

Japanese consumer electronics giant Panasonic Corp. said Wednesday its quarterly earnings surged more than eight-fold, helped by the weaker yen and a one-time boost from a change in its corporate pension ...

Recommended for you

Facebook sues law firms, claims fraud

1 hour ago

Facebook is suing several law firms that represented a man who claimed he owned half of the social network and was entitled to billions of dollars from the company and its CEO Mark Zuckerberg.

IBM 3Q disappoints as it sheds 'empty calories'

2 hours ago

IBM disappointed investors Monday, reporting weak revenue growth again and a big charge to shed its costly chipmaking division as the tech giant tries to steer its business toward cloud computing and social-mobile ...

MasterCard, Zwipe announce fingerprint-sensor card

Oct 18, 2014

On Friday, MasterCard and Oslo, Norway-based Zwipe announced the launch of a contactless payment card featuring an integrated fingerprint sensor. Say goodbye to PINs. This card, they said, is the world's ...

User comments : 0