[Asia Economy Reporter Lee Jun-hyung] Iljin Display, a subsidiary of Iljin Group, is expected to stop its three-year streak of losses and achieve a turnaround (profitability) in the first quarter of this year.
Iljin Display announced on the 17th that it will reduce the operating rate of its Pyeongtaek plant, which has low competitiveness in the touchscreen panel (TSP) business, while ramping up production at its Vietnam plant. The company produces sapphire ingots and wafers, which are basic materials for light-emitting diodes (LEDs), as well as TSPs for laptops. However, due to intensified competition in the LED market and rapid changes in the TSP market, the company has been unable to avoid losses for the past three years.
This is why the company carried out restructuring of its touchscreen and sapphire business units last year. The increasing demand for sapphire wafers for vehicle infotainment displays and related components, as well as for micro LED, is also raising expectations for a turnaround. Additionally, the sapphire business unit is actively targeting the market in preparation for increased demand for high-quality wafers due to the expansion of the mini LED market.
Kim Ki-hwan, CEO of Iljin Display, said, “We plan to raise approximately 30 billion KRW through a capital increase,” adding, “We will achieve profitability this year through expansion of the Vietnam plant and investment in automation.”
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