Panasonic will put its money-losing LCD panel business under the automotive and industrial systems segment July 1 with an eye toward reducing dependence on television applications.
The LCD business is now part of the audiovisual communications networks segment. The shift follows an April move to merge the TV business into appliance operations.
TV panels account for about 40% of sales in the LCD panel business. But their margins are slim, so Panasonic is working to lower the figure to 30% or so.
By giving the business a new home, the company aims to cultivate a client base for other LCD panel applications, including car navigation systems.
Panasonic develops and produces liquid crystal display panels at its Himeji plant in Hyogo Prefecture, with a staff of around 600. The facility will make more high-margin panels, including ones for health care equipment, from next month.
The LCD panel business is still likely to suffer a 4.6 billion yen ($44.61 million) operating loss in the year ending March 2015.
