Matsushita Electric Industrial Co. and Daikin Industries Ltd., Japan's two largest makers of household air conditioners, plan to expand a parts-sharing alliance by jointly developing the components to cut costs.

Matsushita Electric and Daikin may develop heat exchangers for the air conditioners, Akira Kadota, a spokesman for Osaka-based Matsushita, said Thursday, without elaborating. Daikin may also increase purchases of Matsushita-made compressors by 50 percent, said Saki Hirata, a Daikin spokeswoman.