Pioneer is planning a new plasma display panel (PDP) factory in Japan.
It is preparing land for the factory in Yamanashi prefecture, northwest of Tokyo.
The precise construction schedule would be decided in early 2007 after gauging consumer demand for PDP televisions in the year-end selling period, Pioneer spokesperson, Michiko Kadoi, said.
The company wouldn't confirm a newspaper report that the factory will have an initial annual output of 300,000, rising to more than 1 million panels.
Pioneer is one of Japan's largest manufacturers of PDPs and has started refocusing its efforts on models for its own brand rather than selling panels to competitors for their use. In the April to June quarter, the company reported a 32 per cent year-on-year jump in PDP TV sales due to strong demand in Europe and North America. PDP TVs accounted for almost half of the company's entire home electronics sales in the quarter.