Sanyo sells chip business to ON Semi for $336million
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ON Semiconductor is to buy Sanyo Electric's subsidiary, Sanyo Semiconductor for $336million. The purchase is due to be completed by the end of the year.
Based on the most recent completed quarter, Sanyo Semiconductor's annualised revenue was about $1.2billion dollars. The annualised revenue of the combined entity would be approximately $3.5bn dollars.
Susumu Furuike, executive vice president of Sanyo Electric, said: "Since we became a subsidiary of Panasonic in December 2009, we have been discussing our semiconductor business from the viewpoint of concentration and selection. And we judged that it is the best option for both Sanyo Electric and Sanyo Semiconductor to strengthen our analogue chip and power semiconductor businesses in ON Semiconductor."
According to Furuike, Sanyo Electric negotiated with several firms including investment funds, but said that ON Semi was the only company that needed all of its discrete semiconductor, hybrid, bipolar and system chip businesses.
Keith Jackson, president and ceo of ON Semi, said, "ON Semiconductor will be able to make a full fledged entry into the Japanese market by acquiring the resources of Sanyo Semiconductor."
