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[Alpha Biz=(Chicago) Reporter Kim Jisun] LX International liquidated Yantai Corporation in China, which operated a small liquid crystal display (LCD) panel component warehouse.
LG Display, a key customer, has reduced production of LCD modules at its Yantai plant in line with falling demand for LCD panels for smartphones.
According to the investment banking industry on the 19th, LX International liquidated its Yantai LX International VMI Co. (VMI’) corporation in Yantai, China, in the first half of the year due to LG Display's reduced production of mobile LCD panels. LX International Yantai Corporation ran a supplier-led inventory management (VMI) business that stores parts necessary for LCD panel production and supplies them at the necessary time. Analysts say that the site where the warehouse was located is likely to be used for other purposes in the future as LX International was renting and using it.
LX International Yantai Corporation has supplied components necessary for LCD production to LG Display Yantai Module Plant (LG Display Yantai Co., Ltd.), a major customer. LG Display's Yantai module plant was established in 2010 as one of LGD's display product production plants. We are working on connecting LCD circuits to the LCD module assembly plant.
LX International has decided to liquidate Yantai Corporation due to the decrease in LCD demand. As production at LG Display's Yantai plant decreased, demand for parts also decreased. Small panels used in IT products, including smartphones, have recently been rapidly converted to OLED. The situation has changed rapidly as Chinese panel makers, which focused on LCD, have also started to produce OLED panels one after another.
According to market researcher Omdia, the proportion of OLEDs in the display market for IT devices is expected to increase from 3.9% last year to 23.6% in 2027. Another market research company, DSCC, also expects the IT OLED market, including laptops, to reach $ 3.6 billion (about 4.716 trillion won) in 2026.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
