TOKYO (AP) -- Japanese electronics maker Sharp Corp. said Thursday it may cut production of liquid crystal display panels, as global demand falters for personal computers and mobile phones.
The comments came after a report Thursday in the Nikkei, Japan's top business daily, that Sharp will shut down production at two small domestic plants and cut 300 contract workers.
"Today's report was not based on an announcement by the company. We are now considering adjustments in our production of LCD panels, but nothing has been decided," said Sharp spokeswoman Miyuki Nakayama.
The Nikkei said Sharp will close one production line each at its plant in Mie and another factory in Nara, both of which are located in western Japan. They began operations in the early 1990s, and currently make low-definition liquid crystal display panels.
Sharp decided to shut down the lines due to a prolonged slump in global demand for personal computers and mobile phone handsets, the paper said.
The paper said the closures will be completed in the next fiscal year, which starts in April 2009.
Sharp competes with South Korea's Samsung Electronics Co. and Japanese electronics maker Panasonic Corp. in the global LCD TV market.
Shares in Sharp slipped 0.5 percent to close Thursday at 647 yen ($7).