Kyodo News Agency is citing unnamed sources as saying that the Japanese electronics organisation, a subsidiary of renowned global consumer appliances brand Panasonic, is keen to reach an agreement over the buyout by the middle of July.
The company is looking to sell its loss making semiconductor arm, which was 7.1 billion yen (£150 million) down for the year to March 2010 and is keen to focus on faster-growing sectors such as that for rechargeable batteries.
Last month, the firm announced it is to invest around €800 million in its solar and energy solutions business in Europe by March 2016.
This year, the brand said it will start developing low-cost power applications for large buildings such as schools, factories and retail outlets.
Arizona-based ON Semiconductor supplies various sector including communications military.
