Japanese electronics maker Panasonic Semiconductor is leaving the business, selling its last business to a Taiwanese company. Panasonic said Thursday that it is moving the semiconductor business, run by Panasonic Semiconductor Solutions, to Nuvoton technology. In recent years, Panasonic has sold its semiconductor plants in Singapore, Indonesia and Malaysia.
Terms were not released for Thursday’s move, which is set to expire next year.
Panasonic’s chipmaking has struggled in recent years amid competition from cheaper competitors in South Korea and the rest of Asia.
Japanese media reports say the recent US-China trade war, which has reduced sales in China, has added to the pressure.
The move highlights the efforts of Panasonic and other Japanese electronics makers to focus on more lucrative business.
“The competitive environment around the semiconductor business has become extremely tense due to the aggressive expansion of competitors, huge investments in centralized areas and industrial restructuring,” Panasonic said in a statement.
The company says it believes Nuvoton appreciates the power of Panasonic’s technology and will lead the business to steady growth.
Panasonic has handed over another part of its semiconductor business to Japanese rival Rohm Co., which is due to end this year.
Some Japanese companies, including Toshiba, Fujitsu and Sony, remain in business.