Osaka, Japan - Sharp will halve its LCD panel output at its Sakai facility in, according to a Nikkei business report Tuesday.
The company, which has experienced reduced sales for TVs due to the economy and other factors, will reduce its rate of production over the course of a month or more.
The Sakai plant has run at 80 to 90 percent capacity since being temporarily idled in April.
The plant was set up to handle sheets of mother glass (so-called 10 Gen) measuring 9.45 feet by 10.27 feet, which is almost double the size of those at another Sharp factory.
Nikkei said inventories piled up during the holiday sales period due to slower than expected sales.
Nikkei said Sharp is considering using the production lull to reconfigure the Osaka factory to make products with newer and better features, including higher resolution levels and reduced power consumption.
A spokesman for Sharp Electronics' U.S. marketing group said: "As the sales leader of large-screen (60 inches and larger) LED televisions in the U.S., Sharp Electronics Corporation continues to have strong growth and sales projections for large-screen LED TVs in the U.S. market. The company's sales expectations in the U.S. for the 2012 fiscal year are unaffected by production rates at our Sakai plant."