On Thursday, Japan’s Panasonic Corp stated it will sell its loss-making chip business to Taiwan’s Nuvoton Technology, reported Nikkei Asian Review.

According to the report, Panasonic is also slated to divest three Japanese chipmaking facilities of TowerJazz Panasonic Semiconductor – a joint venture with Israel’s Tower Semiconductor.

The development comes midst the U.S.-China trade war which has seen chipmakers take a hit even as they grapple with an oversupply in the market.

Panasonic did not immediately respond to requests for comments.