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Parts business to boost LG s new holding firm
Posted : 2021-05-02 15:58
Updated : 2021-05-02 17:36
Silicon Works research center in Daejeon, south of Seoul, is seen in this photo, Sunday. Korea Times file
By Kim Yoo-chul
After confirming the official launch of LX Group, a spin-off holding company from the LG Group, investors attention is on how Chairman Koo Bon-joon will formulate his thoughts into detailed corporate growth focusing on its semiconductor affiliate, Silicon Works.
Silicon Works is the country s largest fabless (non-manufacturing) company and is set to diversify its business portfolio under this new leadership, given Koo s strong interest and successful track record in managing component-oriented businesses, according to people familiar with the issue.
Samsung may soon secure LG’s key display driver and touch IC supplier
Silicon Works is reportedly looking to expand its clientele by supplying DDIs (Display Driver IC) and touch ICs (Integrated Circuits) to Samsung Electronics and Samsung Display, respectively. Silicon Works is the biggest fabless semiconductor design company in South Korea and it has so far bolstered its business by supplying semiconductor solutions to LG Display. The company is to become a key affiliate of LX Group / LX Holdings a company soon-to-be-split from LG Group and led by Koo Bon-joon.
Silicon Works has been a key partner of LG Display throughout the years, so the idea that it’s looking to secure Samsung LG’s closest rival as a client might seem strange at first. Then again, LG Electronics is reportedly considering exiting the smartphone business this year, and even though LG Display would remain one of Silicon Works’ main clients, the latter company could suffer revenue losses.