Seiko Epson, Japan-based maker of small- and medium-sized LCD (Liquid Crystal Display) panels, reportedly plans to cut back on production of small-sized LCD panels for use in mobile phones and handheld devices. The company's existing six manufacturing facilities, both located in Japan and overseas, are expected to be condensed into two, Nihon Keizai Shimbun reported.

Operations of Seiko Epson's two Japanese plants - one in Gifu Prefecture and the other in Nagano Prefecture - will be transferred to the company's Tottori facility by 2010. Also, Seiko Epson plans to shut down two plants in Shenzhen, China and the Philippines by year-end 2009. The company is expected to concentrate its overseas production at its Suzhou plant in China.