Panasonic to exit TV manufacturing, outsourcing production to China's Skyworth

Panasonic partners with Skyworth to exit TV manufacturing

Panasonic has officially ceased manufacturing its own televisions, announcing that Chinese firm Skyworth will take over the production, marketing, and sales of Panasonic-branded TV sets.

Under the agreement, Shenzhen-based Skyworth will lead sales and logistics operations. Panasonic will provide technical expertise and quality assurance, specifically collaborating on the development of high-end OLED models.

The Skyworth-produced Panasonic televisions will be sold in the United States and Europe.

Panasonic committed to providing support for all units sold through March 2026, as well as new models launched starting in April.

The move is the latest development in the company's volatile history in the television market. While Panasonic dominated the plasma TV sector in 2010, it shuttered that division in 2014 following the rise of LCD technology and mounting economic pressures.

Panasonic’s decision to outsource its television manufacturing to China’s Skyworth marks the definitive end of an era, signaling a profound realignment in the global consumer electronics landscape. More than a tactical retreat, the move represents a formal acknowledgment by the once-dominant Japanese titans that they can no longer match the manufacturing scale and aggressive pricing of Chinese and South Korean competitors.

For Panasonic, the pivot reflects a calculated shift toward an asset-light model. By moving away from capital-intensive production in a low-margin sector characterized by fierce price wars, the company is effectively monetizing its brand—its most valuable intangible asset—while insulating its balance sheet from the volatile risks of manufacturing and inventory management. Management’s pledge to oversee quality standards is a clear attempt to preserve the "Japanese quality" premium, reassuring a loyal customer base that the brand’s DNA remains intact despite the change in assembly.

However, the strategy carries significant execution risk regarding brand equity. The company faces a critical test of consumer perception: whether the Panasonic label retains its historical prestige when the underlying hardware and assembly processes are entirely managed by a Chinese entity.

In a broader context, this move underscores a strategic migration among Japanese conglomerates. Faced with eroding advantages in mass-market consumer goods (B2C), these firms are increasingly pivoting toward high-margin B2B sectors and specialized high-tech components—territories where their engineering leadership still commands a formidable competitive edge.

For the generation that built Little Saigon, legacy Japanese brands like Panasonic, Sony, and Sanyo were once the ultimate symbols of quality, durability, and hard-won prosperity. Whether purchased with earnings from the nail salon industry or the daily grind of family phở restaurants, these electronics were more than just appliances; they were prized status symbols often sent back to Vietnam as cherished remittances. Seeing a household name like Panasonic shift its production to China marks a poignant transition in the global economy, stirring nostalgia for an era when Japanese craftsmanship was the gold standard. For a community that has navigated the complexities of the American dream through F2B family sponsorships, H-1B professional tracks, EB-5 investments, or the protections of TPS, this industrial shift reflects a changing world where the old markers of reliability are fading away.