Sony, Toshiba to boost overseas LCD outsourcing

TOKYO, Aug 16 (Reuters) - Sony Corp (6758.T) and Toshiba Corp (6502.T) are set to sharply increase the percentage of their LCD televisions outsourced to Taiwanese manufacturers as a cost-cutting move, the Nikkei business daily said on Saturday.

While both companies will continue to make LCD televisions at their own factories, they hope to meet growing demand through electronics manufacturing services (EMS) firms in Taiwan.

Sony, which outsourced production of roughly 500,000 LCD televisions to Taiwanese firms in the 2007 business year, is set to raise this to more than 3 million in the current business year ending in March 2009, the Nikkei said.

To do so, it is believed to have signed a contract with Hon Hai Precision (2317.TW), the paper added.

Toshiba has contracted out LCD television production to Compal Electronics (2324.TW), with that firm expected to make a bit more than 20 percent of Toshiba's planned LCD television shipments for the 2008 business year.

Officials at both companies were not available for comment.

Sony said in May that it aims to sell 17 million LCD televisions in the year to next March, up from 10.6 million in the year just ended.

The company, which traditionally has strengths in mid-range to high-end products, plans to launch low-cost, entry models this year, broadening its Bravia LCD television lineup. (Reporting by Elaine Lies; Editing by Kim Coghill)