Seiko Epson has entered into talks with an unidentified company regarding the possible sale or joint-operation of one of its semiconductor subsidiaries in Japan.The subsidiary in question is Yasu Semiconductor, which was established in 2001 and operates a chip plant in Shiga prefecture in west Japan, Seiko Epson said Wednesday. The unit recorded net sales of ¥10 billion ($86 million) in the fiscal year to the end of March 2006, down 5 percent on the year earlier. It recorded a net profit of ¥167 million, down 3 percent.A letter of intent was signed on July 10 and discussions on the exact terms of the arrangement with the third party are expected to be decided by the end of September. Talks began after the unidentified company expressed an interest in acquiring the technology, facilities and know-how of the subsidiary, Seiko Epson said in a statement. The Japanese manufacturer is currently trying to improve the profitability of its chip operations by slimming down the business through restructuring. Technology Industry