OSAKA: Japanese electronics giant Panasonic Corp. has decided to scrap its unprofitable operations to make solar cells amid ever-increasing price competition, it was learned Sunday.

Solar cell production at the company’s Malaysian plant and Shimane plant in Unnan, Shimane Prefecture, western Japan, will be terminated by the end of March 2022.

Over solar cells, Panasonic last year unwound its joint production deal with U.S. electric vehicle maker Tesla Inc.

Panasonic faces stiffer competition from Chinese and other foreign solar cell makers.

Following the pullout from the solar cell production, Panasonic will still continue sales of solar power systems to households and businesses.

The Shimane plant will focus on the production of equipment used in electricity management.

Panasonic made a full entry into the field of solar cells by making Sanyo Electric Co. a wholly owned subsidiary in 2011.

But the solar power business, including solar cell production, has become what Panasonic describes as structurally unprofitable operations.

Panasonic is accelerating structural reforms of the entire group. It has sold its semiconductor business and decided to terminate the production of liquid crystal display panels.

JIJI Press