According to an interview by Reuters with Seiko Epson President Seiji Hanaoka, the Japanese company plans to cut sales of LCD panels and chipsets for use in mobile phones, as prices in the handset industry have fallen considerably, thereby affecting the profitability of Seiko Epson's semiconductor and panel businesses. In LCD panels, the company aims to lower the percentage of total panel production shipped to mobile phone manufacturers to about 50%, down from the current 67%, and it wants to increase shipments for applications such as car navigation systems. In chipsets, Seiko Epson strives to reduce the percentage of total production shipped to handset makers to 30% from the current 50%, and to compensate it plans to sell more chipsets to other semiconductor makers on a contract basis.