Mitsubishi Electric Corp. plans to outsource production of large liquid crystal displays to leading Taiwan LCD maker Chunghwa Picture Tubes Ltd. beginning this summer, Mitsubishi officials said Wednesday.
Mitsubishi is planning to shift production of 15-inch LCDs at Advanced Display Inc., a subsidiary in Kumamoto Prefecture, to Chunghwa in a bid to cope with higher costs amid intensifying competition, they said.
Advanced Display produces 1 million 15-inch LCDs a year, at a time when demand is growing rapidly for personal computers and LCD televisions.
After the deal is in place, Mitsubishi Electric's large-size LCD business will focus on development and design work, while its production activities will be centered around small and midsize displays, the officials said.
Advanced Display will shift its main line of LCD products to more value-added versions such as displays for mobile phones and in-car TV monitors, they said.
Mitsubishi and Chunghwa have been aligned for technological cooperation since 1997.