LG Innotek, a company that makes smartphone parts such as mini vibration motors, LCD modules, light-emitting diode (LED), camera modules, protection circuit modules, and more is selling patents and equipment related to its LED business to a China-based LED company, reports The Elec.
As per the report, the South Korean company will clean out equipment related to LED at its Paju pant within one month. The company will be handing over more than 10,000 patents related to LED to the Chinese firm.
By selling the patents, the company will not only receive money but will also be saving around 1 billion won in maintaining those patents. It is being said that LG initiated talks to sell its LED patents and equipment for 100 billion won in a turn-key fashion.
On the other hand, the Chinese company will be making profits in the LED business given that it can rely on subsidies given by the local government. It will also be able to offer more products in the market.
LG had invested heavily in the LED business, especially in the Ultraviolet (UV) LED area which is likely the reason for the deal to go through. Experts believe that LG could have licensed the UV LED patents instead of selling them.
For those who are unaware, South Korea-based LG Innotek had decided to exit the LED business in October 2019 and had attempted to sell its LED facilities in China and South Korea in the second quarter of 2020 but those business talks were delayed mainly because of the COVID-19 pandemic.
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