Panasonic to quit OLED business

Kyodo

Panasonic Corp. has decided to exit the organic light-emitting diode business because it can’t expect to raise profitability amid high production costs, sources familiar with the matter said Sunday.

Panasonic is arranging the sale of its OLED business to Japan Display Inc., the world’s largest maker of liquid crystal displays for smartphones and tablets, the sources said, adding the two may reach an accord in June.

According to the sources, the electronics giant plans to focus on LDC panel production at its plant in Himeji, Hyogo Prefecture, to raise the ratio of LDCs for non-TV products to ensure a profit.

Panasonic and Sony Corp. dissolved their business tie-up in the OLED development at the end of 2013. Panasonic withdrew from producing organic electroluminescence panels earlier this year.