LG Electronics is expected to outsource significant portion of the digital TVs it has been producing in Korea, the company siad in a statement.

LG has been making most of its digital TVs overseas, where labor costs are much lower. Recently, however, even the small portion produced at home was apparently thought to be unnecessary.

LG Electronics said on Sunday that it recently concluded a contract with a TV firm in Taiwan to produce 500,000 LCD TVs per year targeting the U.S. market, the KChosun IIbo reports. The TVs will be sold in the U.S. under the name Zenith, an American brand LG has bought a few years ago.

LG recently initiated contacts with two firms in Taiwan to outsource some of its 10-20 inch LCD TVs that will be sold under its own name. LG also plans to outsource its 40 inch-range PDP TVs, coming up with the general outline by the end of the month, which will include the production scale and the outsourcing company.