Liquid crystal display manufacturer Varitronix International Holdings will concentrate on the research, development and production of value-added products while gradually phasing out low profit-making products.
Chairman Chang Chu-cheng said the company would push products such as light-sensitive 'auto-dimming mirrors' for cars and micro-displays.
Varitronix is to start production of auto-dimming mirrors in September as part of a joint venture with United States company Donnelly Corp.
Donnelly Corp, which is listed on the New York Stock Exchange, holds a 95 per cent market share of vehicle mirror systems in the US.
Varitronix Malaysia is to manufacture and distribute in Southeast Asia, while Donnelly will target the US and European markets.
Mr Chang said production would start late in the year. He said he did not expect it to make a substantial contribution to this year's profits.