TOKYO --  Hitachi High-Technologies will sell the sales operations of its electronic component placement business to Yamaha Motor Co. and close its equipment development subsidiary, the company's board has decided. The firm cited lagging sales for its decision to exit the business.

The equipment OEM's sales subsidiary, Hitachi High-Tech, will be shut down by the end of March 2015, with certain assets transferred to Yamaha by Feb. 1. Hitachi High-Tech will also cooperate with Yamaha to provide servicing for the products. Terms of that deal were not announced.

Hitachi High-Tech Instruments, the company's design and development unit will be closed. Hitachi launched its SMT placement machine and peripheral equipment business in 2003,

For its fiscal year ended March 31, the chip mounter business had net sales of 6.8 billion yen ($64.6 million).

In a press announcement, Hitachi High-Tech said poor PC and consumer markets were a drag on the business.

"The [SMT placement equipment] sector has been experiencing a harsh business environment for some time, affected by a slump in the PC and digital appliance markets and slowing growth in the high-end mobile devices market. Hitachi High-Tech has been conducting continuous structural reforms in the chip mounter business, but has now judged that it will be too difficult to improve its performance, resulting in the decision to withdraw from the business."