Sumitomo Chemical is retreating from China’s LCD polarizing film market, marking another setback for Japanese manufacturers in Asia’s display industry.
The company plans to sell its Chinese subsidiaries producing polarizing film for large LCD panels and cease operations in South Korea. The restructuring will cut its total production capacity by 70% compared to early 2023 levels when completed in March 2025.
The former market leader has seen its global share in polarizing film plunge to 9% in 2023 from 16% a year earlier, dropping to fourth place as Chinese rivals like Shanjin Optoelectronics gained ground through aggressive pricing strategies.
The shift reflects broader challenges facing Japanese electronics materials makers. Sharp ended domestic production of large LCD panels in August 2024, while AGC plans to reduce LCD glass capacity by 20% through March 2025.
Sumitomo Chemical will maintain its Taiwan facility for high-end ultra-large LCD panels. However, company president Keiichi Iwata expects production of large LCD polarizing film to eventually cease within a decade.
The retreat follows a similar move by South Korea’s Samsung SDI, which sold its polarizing film business to a Chinese buyer in September 2024, highlighting the growing dominance of Chinese manufacturers supported by government subsidies.
