Staff Reporter: Ouyang Jing
Japan Display Inc. (JDI) announced on September 5 a business restructuring plan that includes substantial workforce reductions in Japan and overseas. In this round of voluntary departures, 1,483 employees in Japan (more than half of the domestic workforce) and 83 overseas employees applied to leave, for a total of 1,566. JDI expects the layoffs to reduce annual labor costs by JPY 13.5 billion (about RMB 652 million). A rough calculation suggests average severance of approximately RMB 293,100 per person.
JDI’s large-scale layoffs are the inevitable result of long-standing structural problems. According to its financial statements, JDI has been loss-making for 11 consecutive years. In fiscal 2024 alone, losses reached JPY 78.2 billion (about RMB 3.9 billion), nearly JPY 34 billion worse than the previous year. This prolonged deterioration has severely weakened the company’s finances, forcing extreme self-help measures.
JDI’s difficulties also stem from strategic missteps. As competition intensified in the panel industry, the company failed to respond effectively to market shifts and instead clung to its existing product mix, creating a mismatch with demand. Its dependence on a few major customers was excessive; when they shifted to other suppliers, JDI lacked a diversified customer base to cushion the blow. Capacity planning was another weak point: new production lines did not receive sufficient orders in time, leading to idle capacity and elevated costs. As market conditions worsened, JDI’s operations deteriorated further.
JDI’s plight reflects a broader decline in Japan’s display sector. Japan once led global display technology, but has steadily lost ground. Although Japanese firms possess deep technical expertise, many have struggled to adapt to market changes and cost pressures. They have tended to rely on traditional technical paths and lacked forward-looking deployments in emerging markets such as Mini/Micro LED and OLED.
By contrast, China’s LCD industry has, after decades of development, achieved a historic leap from catching up to leading and has become an indispensable pillar of the global display ecosystem. Mainland Chinese panel makers now hold the leading position in global LCD, with top players commanding dominant market share. In the first half of 2025, mainland panel makers reported total revenue of USD 29.3 billion, accounting for 52.1% of the global market—surpassing half for the first time—further consolidating China’s leadership in display panels.
Japanese firms have also been slower to act in global competition, failing to build complete supply chains and market channels as rapidly as their Chinese and Korean counterparts. Meanwhile, China’s LED display industry has fully embraced innovation, forming a complete industrial chain and strong market competitiveness. Chinese LED display companies have evolved from single-product lines to diversified, intelligent product ecosystems, with sales volumes ranking first worldwide. On key technology roadmaps, Chinese LED makers have remained at the forefront—from foundational SMD processes to GOB protection upgrades, MiP integrated packaging, and COB fine-pitch breakthroughs—continuously expanding LED display applications into new fields. Through technological innovation and market expansion, China’s LED display industry has successfully transformed from low-end manufacturing to high-end innovation, building global competitiveness.
The JDI layoffs also highlight the shifting landscape of the global display industry. With the rise of China’s LCD and LED sectors, the industry’s center of gravity has moved from Japan and Korea to China. Leveraging cost advantages, rapid innovation, and market-expansion capability, Chinese LED display companies are reshaping the global competitive order. They not only dominate the domestic market but are also actively expanding overseas, becoming major global suppliers of LED display products. This industrial shift mirrors broader changes in global manufacturing and illustrates China’s transformation from “made in China” to “intelligently made in China.”
For China’s LED display industry, JDI’s experience offers important lessons. First, technological innovation is the core of competitiveness, but it must be tightly coupled with market demand—innovation behind closed doors is a dead end. While scaling up rapidly, China’s LED display sector should put even greater emphasis on demand orientation to ensure that technical progress translates into market advantage. Second, cost control is vital to survival. Under the premise of quality, the industry should continue to optimize production processes, boost efficiency, and reduce costs—steps that both enhance competitiveness and free up resources for upgrades.
Diversification is also essential to avoid over-reliance on any single market or customer. JDI’s case shows that dependence on one key client is a major operational risk. Chinese LED display firms should actively expand in both domestic and international markets, build diversified customer portfolios, and strengthen risk resilience. At the same time, deeper supply-chain integration—through tighter upstream–downstream collaboration—can create synergies and raise overall competitiveness.
Conclusion
JDI’s predicament reminds us that technological leadership is never permanent; continuous innovation and adaptation to market change are mandatory. China’s LED display industry should keep pushing the technological frontier, expand into high-end applications, strengthen international collaboration, and build brand value—shifting from scale advantages to quality advantages to contribute “Chinese wisdom” and “Chinese solutions” to global display development. At the same time, the industry must guard against excessive reliance on low-end manufacturing and avoid homogenized competition, achieving high-quality growth through innovation and brand building. As China’s LED display industry continues to advance, the country is poised to play an even more important role in the global display arena and make greater contributions to the progress of display technology worldwide.