Nuvoton Technology Corporation announced in a press release that it was purchasing Panasonic Semiconductor Solutions’ (PSCS) semiconductor business to the tune of $250 million.

Panasonic has been aggressively trying to cut $920 million by the year ending March 2022. Its semiconductor business was a loss-making endeavor, according to Reuters, and the company had already divested itself of much of its chip-making business in previous deals. What was left was a joint venture with Israel’s Tower Semiconductor, and “currently focuses on designing power-management chips and sensors for smartphones, cars and security cameras.”

According to Nuvoton, the deal is an all-cash deal “which is expected to close by June 2020, is subject to certain closing conditions including obtaining required regulatory and certain other approvals and consents in the relevant jurisdictions.”

The company hopes the acquisition will give it a stronger position in the global semiconductor industry.

“The acquisition of the semiconductor business mainly operated by PSCS will generate greater value for customers and shareholders of both companies, and will:

• Increase Nuvoton’s presence in the global semiconductor industry through greater scale and volume of semiconductor solutions;
• Position Nuvoton well to capture secular growth trends in the electrification and automation of automotive and industrial fields;
• Broaden Nuvoton’s distribution channels and customer base to explore cross-selling opportunities; and
• Strengthen Nuvoton’s technology platform via deeper R&D resources and a broader intellectual property portfolio.”