Will transfer ownership of the IP of this business to Shijiazhuang Chengzhi Yonghua Display Materials Co., Ltd. (Slichem).

DIC Corporation announced that it will withdraw from the liquid crystal (LC) materials business, accounted for in the Color & Display segment, by the end of December 2024.

The company also announced that it will transfer ownership of the intellectual property of this business to Shijiazhuang Chengzhi Yonghua Display Materials Co., Ltd. (Slichem), based in the People’s Republic of China (PRC).

DIC commenced the production and sale of LCs in 1973. Since then, the company has worked to grow this business, operating primarily as a supplier of LCs for use in displays. However, the business environment has deteriorated in recent years as a consequence of multiple factors, including intensifying competition with overseas manufacturers.

In the DIC Vision 2030 long-term management plan, announced in February 2022, the company identified thin-film transistor (TFT) LCs, its core LC materials product, as being in need of structural reform and has explored drastic measures to improve the value of the LC materials business.

Despite careful deliberation, the persistently challenging business environment has led the company to determine that continuing the business would not be feasible, prompting the decision to withdraw.