- Melco Display Technology, a subsidiary of Mitsubishi, produces TFT-LCD panels
- There is no significant impact on the company’s consolidated business performance
Mitsubishi Electric Corporation announced today that it will end the production of TFT-LCD modules manufactured by its wholly owned subsidiary Melco Display Technology Inc. (MDTI), aiming at June 2022. The production termination is due to the changes of business environment.
The company will shift its and MDTI’s operating resources from LCD business to its business growth drivers such as power devices, and will aim further growth and development.
No longer able to maintain the products’ competitiveness
The company’s LCD business, currently focusing on small and medium-sized TFT-LCD modules for industrial and automotive use, has been expanding its business by developing and launching high value products with advanced technologies in the specific market segments based on the market needs. However, the company has decided to end the TFT-LCD modules production and terminate the business based on the consideration that the company is no longer able to maintain the products’ competitiveness under the situation that the global competition involving the company’s focusing segment of high display performance and high reliability expands and intensifies with significant falling in price.
“There is no significant impact on the company’s consolidated business performance,” read an official statement released by Mitsubishi Electric Corporation. The company’s revenue for fiscal 2020 decreased by 57.4 billion yen from the previous fiscal year to 4,462.5 billion yen.
Mitsubishi has recently announced plans to acquire buildings and land from Sharp Fukuyama Semiconductor Co., Ltd., a wholly owned subsidiary of Sharp Corporation located in Fukuyama, Hiroshima Prefecture, Japan. The acquired properties will serve as a new site where Mitsubishi Electric’s Power Device Works will process wafers for the manufacture of power semiconductors.
“The demand for power semiconductors needed to control electric power with efficiency is rapidly rising in parallel with efforts to conserve energy and protect the global environment through carbon-reduction measures, including the ongoing electrification of automobiles worldwide,” the company had said.
