Philips is putting its struggling television arm into a joint venture.
The division has been a drag on the finances of the giant Dutch consumer electronics company, which reported a 31% fall in first quarter profits to 138 million euros.
TPV of China, which makes desktop and TV monitors, will take 70% of the joint venture, with Philips owning the rest.
New chief executive Frans van Houten, who took over on 1 April, told the BBC that Philips is now looking to the future, not to the past.
Philips has an option to sell the remaining 30% to TPV after six years.
Philips' television business was once a global leader, but the division is estimated to have lost almost 1 billion euros in the past four years.
