Sanyo scraps plan to sell semiconductor biz

Contrary to its March announcement that it is selling off its semiconductor operations, Sanyo Electric Co. Ltd has issued a statement that it will retain the business as key operation in its component and device division.

Sanyo clarified at it will not sell the business or transfer shares to a third party, even after inviting bidders for the chip business in April. The company will provide further details on its restructuring plan in the forthcoming new Mid-term Management Plan.

The Japanese company's semiconductor business has struggled since an earthquake in October 2004 damaged its main fab. It has then suffered two consecutive annual losses and expects the current fiscal year to end in the red.