Panasonic is to cut investment in two new flat-screen TV factories by almost a quarter.

It is now planning to spend just ¥450 billion, down from ¥580 billion, in order to trim output capacity amid falling global demand.

The factories are currently under construction in Japan's Hyogo Prefecture. The Amagasaki plant, which will make plasma panels, and the Himeji plant, which will produce liquid crystal displays, are expected to start production in May 2009 and January 2010, respectively.

According to research firm Display Search, the flat-screen TV market is expected to shrink by  15 per cent to 77.6 billion dollars this year, and manufacturers have been cutting prices sharply and reducing output. Earlier this month, Sharp cut LCD output capacity at its Kameyama plant in Mie Prefecture by 20 per cent. X

Check Out
Nikkei (subscription needed)