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UPDATE 1-Japan's Toshiba says outsources LCD TV output

Thu May 29, 2008 9:47pm EDT

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(Recasts with company comment)

TOKYO, May 30 (Reuters) - Japan's Toshiba Corp (6502.T) said on Friday that it has started outsourcing production of liquid crystal display (LCD) televisions to a Taiwanese maker, the first time the electronics maker has contracted out such TVs in large volume.

Confirming an earlier report in the Nikkei business daily, Toshiba said it is outsourcing production of LCD TVs for the U.S. market, and shipments from Taiwan began in February.

Toshiba spokesman Keisuke Ohmori declined to reveal the name of the Taiwanese maker or other details of the manufacturing contract.

The paper also said Toshiba is considering launching a new mobile audio-visual device by the business year ending in March 2010, following its exit from the next-generation DVD business.

Toshiba aims to come up with products that showcase the company's technologies such as NAND flash memory chips and small hard disks, but launch dates and other details have not been set, Ohmori said.

Shares in Toshiba were up 1.4 percent at 930 yen as of 0145 GMT, outperforming a 1.1 percent rise in the benchmark Nikkei average .N225. (Reporting by Sachi Izumi, editing by Brent Kininmont)



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