Electronics giant Panasonic Corp. has decided to scrap its unprofitable solar cell manufacturing operations amid ever-increasing price competition, it was learned Sunday.
Solar cell production at the company’s Malaysian plant and its unit in Unnan, Shimane Prefecture, will be terminated by the end of March 2022.
The company last year also 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.
Despite the ending of its 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.
Panasonic is accelerating reforms of the entire group. It has sold its semiconductor business and decided to terminate the production of liquid crystal display panels.
