Japanese electronics major, Sony has said that it will sell its stake in the joint venture with Samsung Electronics that produces flat-panel screen in order to reduce losses.

Several players are in the industry are looking to reduce costs and are looking at outsourcing production. Sony announced that it will sell of about 50 percent in the joint venture, S-LCD to Samsung for 1.08 trillion won, or $935 million.

The venture was established in Tangjeong, South Korea, in April 2004 and is struggling in the television sector. Following the sale of stake by Sony, S-LCD might be able to move to cheaper outsourcing options and be able to revive its business.

The company “aims to secure a flexible and steady supply of LCD panels from Samsung, based on market prices and without the responsibility and costs of operating a manufacturing facility,” it said in the statement.

Sony also manufactures LCD panels through another joint venture with Sharp, in which it owns a 7 percent stake. Analysts say that Sony has high production costs and the company is struggling to maintain margin due to the stiff competition in the market. The strengthening of the Yen is also eroding the company’s revenues when foreign currency earnings are converted into Yen.

The company’s television unit accounts for billions of yen in losses and it warned that it will report losses for the forth consecutive financial years.