LG Closes Huizhou XBOOM Factory, Ending 34 Years in China

LG Electronics is closing its Huizhou factory in China, ending 34 years of manufacturing operations in the region. This decision removes a significant source of XBOOM audio products from the global supply chain starting in October 2026. Buyers relying on these devices should expect supply adjustments as LG shifts production to other regions. The move signals a broader strategic pivot away from mass-market audio hardware in China.

LG Electronics halts XBOOM audio production at its Huizhou facility in October 2026

The Huizhou facility, established in October 1993, served as LG's first manufacturing subsidiary in the country. It primarily produced XBOOM audio products, with an annual output of approximately 2.6 million units. The factory generated an annual output value exceeding 2 billion RMB. LG Electronics currently holds an 80% ownership stake in the Huizhou operation.

• Factory Location: Huizhou, China
• Factory Establishment: 1993-10
• Annual Audio Production: 2.6 million units
• Annual Output Value: Over 2 billion RMB
• Export Ratio: Over 90%

Profitability at the Huizhou plant declined significantly over the past three years. Net profit dropped from 12.5 billion KRW in 2023 to 9.2 billion KRW in 2025. LG cites fierce price competition from local Chinese manufacturers as a key driver for this closure. The company is also transforming its audio business toward high-end products to justify the strategic shift.

LG has not yet finalized the post-closure strategy for the Huizhou subsidiary. The company is considering transferring production to its Hai Phong, Vietnam facility. Another option involves adopting Joint Development Manufacturing with Chinese partners. LG aims to generate over 1 trillion KRW in audio revenue through this high-end pivot.

LG confirmed the production halt after October 2026 to employees. The company believes adjusting its production base layout is imperative due to market pressures. The final decision on the aftermath of the Huizhou closure remains pending. This closure marks the end of an era for LG's early manufacturing footprint in China.