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TOKYO (AP) - Struggling Japanese electronics maker Sanyo said Friday it is spinning off its money-losing computer-chip business as part of a bigger turnaround effort.
Osaka-based Sanyo Electric Co. is setting up a new company in July and aims to make that profitable in fiscal 2006, it said in a statement. Sanyo will hold all shares in Sanyo Semiconductor Co. and its employees will be transferred to the new company in Gunma Prefecture, north of Tokyo, it said.
The manufacturer has been battered by plunging electronics prices, sinking stocks and competition not only from Japanese rivals but global companies. Sanyo specializes in chips for audiovisual equipment and autos, and counts Japan's Toshiba and Europe's Philips Electronics NV as its top rivals, company spokesman Hiroshi Tsuchiya said.
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