What Happened?
Iljin Display announced on September 11, 2025, the suspension of Ingot and Wafer production at its Eumseong plant. This is projected to result in a sales decrease of approximately 226 billion won, representing 25.4% of the company’s total revenue.
Why the Halt?
Iljin Display has been facing declining sales in its DS (Touch Screen Panel) and AD (Sapphire Wafer) divisions due to a slowdown in the smartphone market and intensified competition. The production halt appears to be an inevitable choice to improve profitability. The company stated its intention to focus on new businesses, such as Micro-LED substrates and SiC processing.
What’s the Impact?
- Short-term Impact: Sales decline, profit deterioration, worsening financial health, stock price drop
- Long-term Impact: Accelerated business restructuring, focus on new businesses, potential weakening of competitiveness, need for strengthened financial risk management, downward adjustment of market expectations
What Should Investors Do?
Investors should exercise extreme caution with Iljin Display at this time. Selling or reducing holdings should be considered. Closely monitor the company’s business restructuring, progress in new ventures, and efforts to improve financial health.