Primax Electronics has announced it will close its digital-camera production lines at its subsidiary in China, as well as reduce production of LCOS optical engines by its subsidiary Primax Display in Taiwan.
The Primax board of directors made the decision during a meeting on October 18, based on the considerable losses the company has suffered from its digital-camera business. In addition, the company now has a more pessimistic outlook on the LCOS segment since leading manufacturers have slowed down their R&D.
Primax Electronics suffered a pre-tax loss of NT$221 million in the first half of this year. The company will set aside about NT$400 million to cover the loss in value from digital-camera stock and related losses.
The company will now focus its production on MFPs (multi-functional peripherals), phone-camera modules and high-end scanners, chairman Raymond Liang indicated.
Samsung, Primax Electronics? main digital-camera ODM client, will shift the Primax orders to its other two Taiwan ODM makers, Ability Enterprise and Minton Optic Industry.