Sanyo to sell its semiconductor arm to On Semi

LONDON, UK: Sanyo Electric Co Ltd. will be selling its semiconductor subsidiary, which is running at a loss, to On Semiconductor Corp.

According to a report in the Kyodo News International, the companies are in talks regarding price, which is expected to be between 20 billion yen and 30 billion yen ($220 million to $350 million). An agreement is expected to be out by the end of July.

Sanyo Semiconductor produces analog ICs for audiovisual products. Reportedly, the company suffered a 7.1 billion yen (about $80 million) loss on sales of 99.5 billion yen (about $1.1 billion) in the year ending March 2010. On Semiconductor makes a broad range of analog and mixed-signal ICs and was started as a spin-off from Motorola's semiconductor product division in 1999.

This sale is one of the new decisions that have come after Panasonic formed a capital and business partnership with Sanyo in December 2008. The subsequent takeover by Panasonic was completed on December 21, 2009.

Earleir, in May, Sanyo Electric announced it was pulling out of the distribution sector, and that the shares of its distribution unit Sanyo Electric Logistics Co. would be sold to a Japanese investment fund.