LG InnoTek was in talks with a Chinese company to sell its LED production equipment and patents, TheElec has learned.
The South Korean component maker had said in October that it plans to exit the LED business.
The company internally decided to sell the LED business back in 2019. The business has posted annual loss for 12 straight years, racking up an accumulated loss of 1 trillion won.
LG InnoTek attempted to sell its LED production facilities in China and South Korea in the second quarter but this faced delays from the COVID-19 pandemic.
Companies in South Korea, China and Taiwan showed interest in purchasing LG InnoTek’s LED business, people familiar with the matter said.
Ex-executive the firm’s ultraviolet LED production site in Paju, South Korea to convince engineers of the deal with the Chinese firm.
LG InnoTek is expected to sell its LED production equipment and patents for around 100 billion won.
The patents will be especially attractive for the potential buyer as LG InnoTek has been developing ultraviolet LED for a long time.
Chinese companies are better positioned to profit from LED business thanks to government subsidies.
LG InnoTek will continue its car lamp operation, however. Affiliate LG Electronics bought Austrian car lamp company ZKW for 1.4 trillion won back in 2018.
LG InnoTek also sold its high density interconnection (HDI) board business last year.