Panasonic to sell three Japan chip plants to Israel’s TowerJazz: Sources

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Japan’s Panasonic Corp will promote its three primary home semiconductor factories to Israel’s Tower Jazz as early as the present industry year ending in March, sources with direct data on the subject mentioned, bringing the embattled electronics giant nearer to completing an overhaul of its loss-making companies.

Underneath President Kazuhiro Tsonga, Panasonic has been streamlining unprofitable businesses, including televisions and smartphones, and semiconductors are the last main ultimate area to complete a round of restructuring. Panasonic targets splitting the three-chip factories out and having Tower Jazz take control, the sources said on Wednesday, declining to be identified because data is not public yet. The companies are negotiating the stake sale and transfer of the factories’ workers, one of the crucial sources mentioned.

Panasonic

Selling off vegetation

The three-chip vegetation in Japan, with about 2,500 employees, has been depreciated and had a blended book worth fforty-twobillion yen as of March 31. Panasonic stated nothing had been determined. Officials at Tower Jazz’s headquarters may now not instantly be reached.

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The sources stated that Panasonic could also talk with another company to promote its five out-of-country chip assembly plants in Indonesia, Malaysia, Singapore, and Thailand. They didn’t establish the prospective purchaser. Panasonic has earmarked a hundred and seventy billion yen in restructuring outlays these 12 months as its consumer electronics operations, like those of Sony Corp and Sharp Corp, reel below fierce competitors from South Korea’s Samsung Electronics Co and LG Electronics.

Thus far, this past 12 months, Panasonic has introduced an exit from plasma TVs and smartphones for home retail consumers, even as it raised its cash forecast and sturdy gross sales of products like batteries to industrial shoppers. With the sale of chip plants, in addition to early retirement bargains and transfers to different operations, Panasonic will halve its semiconductor-section staff to around 7,000 using the trade 12 months to March 2015, one supply mentioned. Shares in Panasonic rose three.2 % on the news, which used to be first stated in the Nikkei trade day-to-day on Wednesday.