Sanyo Electric Semi has never recovered from the earthquake which hits its only profitable fab in 2005. The parent company has been a money loser for years and was forced into a tie-up with Panasonic as a result. ON, which has a shameful record of quality and customer support, seeks to increase its market share as it is unable to organically grow its business. Unfortunately, the strong arming of ON mgmgnt will do little improve business conditions for the company in Japan, although may have some more positive affects for China market where Sanyo produces most of its consumer electric devices.
Sanyo is surely happy to shed its money losing enterprise, Panasonic even happier, while being able to claim that all its employees will join the ON team. Simple tactic Sanyo can't afford the shame of laying off hundreds of worker's while ON will do it with little concern. ON will further deepen its poor track record in Japan and find that there was little gain in the acquisition of Sanyo's customer (don't quote me but Sanyo is probably Sanyo's biggest customer)
Oh it's worse than that I think. Sanyo already had big layoffs in 2006 and a huge capital infusion. It's really starting to look like ONNN is a morgue for dying products and a place to warehouse unwanted employees. It's kinda like the Soylent Green of the semiconductor industry.