Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Japan's Panasonic is nearing a deal to sell three domestic semiconductor plants to an Israeli company/AFP

Finance

Japan’s Panasonic to sell chip plants to Israeli firm

Japan's Panasonic is nearing a deal to sell three domestic semiconductor plants to an Israeli company/AFP

Japan’s Panasonic is nearing a deal to sell three domestic semiconductor plants to an Israeli company/AFP

TOKYO, Nov 27 – Japan’s Panasonic is nearing a deal to sell three domestic semiconductor plants to an Israeli company as it presses ahead with a move to cut money-losing operations, a report said Wednesday.

The electronics giant’s shares jumped 3.45 percent to close at 1,167 yen after the Nikkei business daily said it would sell majority stakes in the three factories to chipmaker TowerJazz.

The deal’s price tag would be determined later, it added.

Most of the plants’ 2,500 workers will stay on after the agreement, with other members of staff transferred to different divisions within Panasonic, the Nikkei said.

The deal could reportedly be finalised in the fiscal year to March 2014.

Panasonic is also in talks to sell full or partial stakes in overseas chip-assembly plants to a Singaporean company, including factories in China, Indonesia and Malaysia, the leading Japanese business daily said.

The tie-up with Nasdaq-listed TowerJazz would provide Panasonic with fresh capital while expanding the plants’ customer base and boosting production, the Nikkei said.

In response, Panasonic said “we are making various studies on our semiconductor business strategy but nothing has been decided at the moment”.

Panasonic is undergoing a huge restructuring aimed at repairing its balance sheet after two consecutive years of record losses.

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

Advertisement. Scroll to continue reading.

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

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...