Media reports claim that Sanyo Electric Co. is planning to sell its unprofitable semiconductor unit Sanyo Semiconductor Co. to ON Semiconductor. Sanyo is said to be in talks with ON Semiconductor over the price of the deal and other details and to be hoping to reach an agreement by the end of July 2010. The deal is expected to be worth between 20 and 30 billion yen.
The reports state that Sanyo plans to sell all shares of Sanyo Semiconductor to ON Semi, while seeking to have the latter retain the workforce at the wholly owned subsidiary. After completing the deal, the reports say that ON Semi will be aiming to expand its operations in Japan, where the company already has a Japanese unit in Kitakata, Fukushima Prefecture.
Sanyo Semiconductor currently manufactures semiconductors for audiovisual equipment in the town of Oizumi, Gunma Prefecture.
Thus far, Sanyo’s only response has been the following, issued on July 3rd:
"Today there were certain reports in the media about sale of Sanyo Electric’s semiconductor business. However, these were not announced by Sanyo, and nothing official has been decided at this time."
