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Hitachi, Mitsubishi cease local TV, DVD and Blu-ray ops

updated 06:20 am EST, Mon January 23, 2012

Hitachi and Mitsubishi join Sony in going offshore

Hitachi and Mitsubishi have separately made decisions to cease aspects of their Japanese manufacturing operations. Following reports to the effect, Hitachi has announced that it will cease production of plasma and LCD TVs in Japan sold under its Wooo brand by this September. Mitsubishi has also made the decision to stop its Japanese DVD and Blu-ray optical disc manufacturing operations.

Hitachi's decision to cease domestic production of TVs is a strategic move to focus products with higher profits. All of the major Japanese retailers of TVs have been struggling to cope with the onslaught of Korean giants Samsung and LG, which have taken over the a sizeable portion of the global TV market, as well as Japanese sales. The Hitachi production facilities in Japan will be retasked to produce projectors and chips while it will outsource TV production to its overseas partners.

Mitsubishi is said to have made the decision to stop producing blank DVDs and Blu-rays as sales of DVDs are in decline as users switch to digital storage formats, while sales of Blu-ray media have remained weak since their introduction, likely for the same reasons. Mitsubishi will continue to market the optical media formats, however it is said that it will instead source their production from partners in India and Taiwan.

The news follows a report that Sony is looking to move its lithium-ion battery operations offshore as well. While it will continue to produce the base componentary in Japan, the assembly of the parts will instead go to Singapore and China. [via Tech Crunch]



By Electronista Staff
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