Matsushita Electric is set to double its plasma display panel output capacity within two years as the Japanese electronics company races to grab a bigger global share of the lucrative high-definition flat-screen television market.

Matsushita, the leading maker of plasma televisions, is set to boost capacity at its factory in western Japan to 1.26m panels a month by May 2009, from a current rate of 640,000 panels a month. The move is aimed at boosting overseas sales, primarily in the crucial US market.