(Yicai Global) Nov. 29 -- Nuvoton Technology's stock price rose after Japanese electronics giant Panasonic said it will sell its loss-making chip business to the Taiwan-based semiconductor firm for USD250 million.

Shares of Nuvoton [TPE:4919] ended 1.8 percent higher in Taipei today at TWD48.35 (USD1.58) each, after earlier climbing as much as 7.6 percent. The stock's peak price of TDW73.90 was reached in October 2017.

Panasonic expects to transfer Japan-based Panasonic Semiconductor Solutions and TowerJazz Panasonic Semiconductor, a joint venture with Israel's Tower Semiconductor, to Nuvoton by next June, Xinhua News Agency reported, citing the company.

Panasonic has been cutting costs amid tightening competition stemming from Chinese and South Korean chipmakers. On Nov. 21, the firm said it will also withdraw from the liquid-crystal display business by 2021, which would leave only Sharp to represent Japan among the world's top 10 LCD firms. 

It is necessary to divest loss-making businesses in order to improve Panasonic's profitability, Chief Executive Tsuga Kazuhiro said earlier.

Panasonic is an established player in the semiconductor field as it entered the business in 1952. But Panasonic Semiconductor's earnings have dwindled, with its loss reaching JPY23.5 billion (USD214.7 million) last year. Revenue was JPY92.2 billion.

Founded in 2008, Hsinchu-based Nuvoton makes chips for products including consumer electronics. It has subsidiaries in the Chinese mainland, the US, Israel, and India.

Editor: Emmi Laine