Panasonic unloads its loss-making semiconductor business
Panasonic unloads its loss-making semiconductor businessPanasonic unloads its loss-making semiconductor business.
Stocks impacted: Panasonic Corp (PCRFY)
Making further efforts in pulling out of loss-making operations and focusing more on growth areas, Panasonic decided to sell its semiconductor business to Taiwan's Nuvoton Technology. Panasonic Semiconductor registered an operating loss of 23.5 billion yen for the fiscal year ended in March. Essentially, the reason for disappointing results is a weakening demand amid the ongoing US-China trade war. Also, as part of a broader campaign to dump loss-making operations, the company plans to withdraw from all production of liquid crystal display panels in 2021. Earlier this year, the electronics manufacturer said it will close a television production site in Mexico, citing low profitability. The company expects to report a decline in sales and net profit for the first time in three years in the current fiscal year through March 2020. On Wednesday, Panasonic stocks closed 0.455 higher and could suffer losses in the near term after the latest news.
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