The recent drop in LCD prices has led Toshiba to buy its partner Panasonic out of their joint display venture in a bid to find profitability.
Phone screen market
The venture is expected to report losses of ¥30 billion (£212 million) early next week. Toshiba's move means it will be able to speed up decision making in a market that is changing rapidly.
The small to mid-sized amorphous silicon LCD panels the firm currently makes for mobile phones, GPS systems and the like will be replaced by the higher-quality polycrystalline silicon type, according to an anonymous source within the company.
Panasonic looks to TVs
TMDT currently holds second place behind Sharp in the global market for that size of LCD, while Panasonic is likely to turn its attention to larger LCDs for flat-screen TV sets.
Toshiba had been planning to start selling OEL panels this October, but now seems set to shelve the technology and return to it when the path to profitability is clearer.
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