Panasonic has decided to significantly reduce its own production of TVs.
The aim is to reduce the ratio of in-house production and increase profitability, such as by entering into final adjustments in the direction of tie-up with Chinese electronics giant TCL and outsourcing the production of small and medium-sized LCD TVs.
Panasonic manufactures TVs in Japan, Southeast Asia, Europe, etc. using LCD panel parts procured from LG Electronics of South Korea.
However, it was exposed to price competition with Korean and Chinese manufacturers, and its profitability was declining.
For this reason, Panasonic has decided to significantly reduce its own production of TVs.
Specifically, we have entered into final adjustments in the direction of partnering with TCL, a major electronics company in China.
We plan to outsource the production of small and medium-sized LCD TVs that are difficult to make a profit.
In addition, we are aiming to improve the profitability of the entire company by reviewing the global production system, such as ending in-house production of TVs in India and Vietnam by the end of this fiscal year.
On the other hand, the Utsunomiya Factory in Tochigi Prefecture, which is the only TV producer in Japan, will continue to make high-priced products such as organic EL TVs.
Panasonic's TV business has long been a pillar of the company, but the plasma TV business, which made a huge investment, was forced to withdraw in 2014, and the production of LCD panels for TVs ended in 2016. ..