Omron announced the suspension of backlight business and dissolution of Dongguan base

On September 10, Omron announced the suspension of the subsidiary's backlight business of Omron Precision Electronics Co., Ltd., and disbanded Omron Precision Electronics (Dongguan) Co., Ltd.

Omron said that Omron Co., Ltd. decided to suspend its subsidiary Omron Precision Co., Ltd. (hereinafter referred to as OPT) backlight business at the end of fiscal year 2019 (to March 2020).

The notice said that Omron and its group's backlight business faced a severe market environment, and Omron carried out structural reforms on the business. However, in view of the tremendous changes in the market environment currently facing the business, Omron believes that it will be very difficult to continue the relevant business in this case, so it is decided to terminate the business at the end of 2019 (to the end of March 2020). In addition, the production base in Dongguan, China will also be closed.

On July 16, 2018, Omron closed the Suzhou factory. Omron Suzhou's main business scope is to design and produce optoelectronic devices such as LCD backlights. The Dongguan factory, which was announced on the 10th, is mainly used in mobile terminals such as mobile phones and smart phones. Design, manufacture and sale of small LCD backlight units.

Previously, there was a view that Omron mainly used LCD backlights. Now the low-end market is occupied by mainland manufacturers. The high-end market is replaced by OLEDs. OLEDs are self-illuminating and do not require backlights. It is difficult for Omron backlight business to continue.