Sanyo Electric said on Wednesday that it had to abandon plans to sell its microchip operations, a move considered key to restructuring.

Negotiations with Advantage Partners LLP, which had won rights to negotiate the purchase, fell through after the Japanese investment fund was unable to procure funds from other investors.

The struggling electronics maker said Wednesday it will not seek another bidder for Sanyo Semiconductor Co.

A senior Sanyo official said other investment funds that are potential buyers are also facing difficulties raising the cash.

The sale was estimated to be worth more than 100 billion yen.

Analysts had favored Sanyo's plan to sell its semiconductor business.

Last week, Sanyo announced that it would begin talks with Kyocera Corp. to sell its cellphone operations.

The two companies expect to reach agreement by the end of the year. The sale is estimated to fall under 50 billion yen.

Sanyo had planned to concentrate its resources on solar cells, rechargeable batteries, car navigation systems and other operations.