Panasonic continues to slash underperforming units, to sell 3 semi plants

|About: Panasonic Corp. ADR (PCRFY)|By:, SA News Editor

In a previously speculated move, Panasonic (PCRFY) will sell 3 semi plants in Japan to Israeli chipmaker TowerJazz, the Nikkei reports. Located in Toyama and Niigata, the plants preform mostly front-end steps like forming circuits on wafers that go into Panasonic products.

Their enterprise value is estimated at ~$97M, and the plants are in need of capex to remain competitive. The majority of 2.5K workers at the plants will be employed by the new owner.

Panasonic is in talks to sell chip assembly plants in china, Indonesia, and Malaysia as well, with the semi business having posted a ¥20.5B loss on ¥184B in sales in the last fiscal year. The company's medium-term plan calls for stemming hemorrhaging units by FY2015.