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Panasonic has announced a major strategic partnership with China’s Skyworth, marking a fundamental shift in how the Japanese brand will produce and sell televisions in Europe.
The deal, unveiled today (February 23, 2026) aims to revitalize Panasonic’s TV business by leveraging the massive manufacturing scale of one of the world’s largest electronics groups.
Under the terms of the agreement, Shenzhen Skyworth Display Technology will take over the heavy lifting of sales, marketing, and logistics across the European region.
Meanwhile, Panasonic will pivot towards high-level product development, quality assurance and maintaining premium brand standards. Notably, the two companies will jointly develop Panasonic’s high-end flagship OLED models.
Trends towards economies of scale
This move mirrors a broader industry trend where legacy Japanese brands are seeking survival through collaboration with Chinese manufacturing giants. The partnership is strikingly similar to the joint venture recently formed between Sony and TCL, where Sony spun out its Bravia business to lean on TCL’s production efficiency.
The driver behind these deals is, of course, the increasingly brutal economics of the global TV market. Profit margins in the industry have become razor-thin due to fierce price competition and high production costs.
By partnering with a “top-five” global manufacturer like Skyworth, Panasonic gains access to world-class R&D investment and economies of scale that are difficult to achieve independently in the current climate. “The new business model will leverage Panasonic’s core strengths in AV processing and quality together with Skyworth’s global manufacturing scale and speed,” said Akira Toyoshima, CEO of Panasonic Entertainment & Communication.
The reorganization also involves internal changes at Panasonic. From April 1, 2026, the company’s Entertainment Division will be reintegrated into the main Panasonic Corporation. This move is designed to strengthen its consumer business, with Europe identified as the primary strategic market for this long-term recovery plan.
For existing customers, Panasonic has emphasized that service remains a priority. The company will continue to provide after-sales support for all TVs sold prior to the transition in March 2026, as well as for those sold under the new partnership starting in April.
By combining Japanese engineering with Chinese manufacturing prowess, Panasonic hopes to secure a profitable future in a market where scale looks set to become the ultimate survival tool.
Sony spins out Bravia TV business in joint venture with China’s TCL
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Chris Price
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