TAIPEI (Taiwan News) — Taiwan-based Nuvoton Technology Corporation (新唐科技) announced on Tuesday (Sept. 1) the completion of its $250 million acquisition of Panasonic’s semiconductor unit.

The all-cash transaction, announced in November, would have been finalized in June but was postponed due to the coronavirus. Panasonic Semiconductor Solutions Co. (PSCS) will be rebranded as Nuvoton Technology Corporation Japan, reported Anue.

Nuvoton has acquired a 100-percent equity stake in PSCS, which supplies semiconductor-related technologies and products, including image sensors, microcontrollers, and field-effect transistors. The relevant technologies will be applied to the automobile and automation industries, said Nuvoton.

The deal has been hailed as being able to magnify the profitability for Nuvoton, a spin-off from Winbond Electronics Corp. The company expects to expand its product lines, increase its market presence, and enhance its research and development capabilities with the acquisition.

Panasonic sold the chip business to cut losses as it has been ill-positioned to compete against semiconductor giants in Taiwan and South Korea, reported Reuters. The Japanese electronics company has shifted its focus to automobile partnerships from low-margin consumer electronics.