Daktronics to Close Irish Factory, Shift LED Production to Mexico and China
2026-10-21 · via AV Magazine
Daktronics is closing its factory in Ireland as part of a restructuring plan the LED display maker says will cut annual costs by more than $18m. The phased closure is expected to be substantially complete by autumn 2027, according to the company.
For operators and integrators who buy Daktronics LED video walls, scoreboards or transportation displays, the move signals a shift in where and how that hardware gets built. Daktronics says it is realigning production capacity among its US, Mexican and Chinese sites. A new Mexico facility has completed its first production run, and the company is expanding in China with a move to a 33,000 square metre leased space built for automatable production. Daktronics also plans to reduce headcount at its US factories through voluntary departures and redundancies.
The company says the three remaining manufacturing countries, the US, Mexico and China, will serve its live events, high school park and recreation, international and commercial business units. North American intelligent transportation system orders will continue to be served primarily from the US, which should limit disruption for transportation agency customers.
Daktronics president and CEO Ramesh Jayaraman said exiting Ireland and aligning manufacturing capacity will help the company manage factory utilisation, improve workforce productivity, set up further automation and streamline procurement. The company said it is working with customers to fill outstanding orders and build enough inventory to meet warranty and service obligations during the transition, though it does not say how long that inventory buffer is expected to last.
The Irish closure is tied to Daktronics exiting the highly customised portions of its international transportation business, which it says represents 1.5% of overall revenue. Offices in Hong Kong and Macau will also close, with the Asia Pacific region served from fewer locations going forward. Jayaraman said the international segment had operated unprofitably for too long and framed the changes as both strategic focus and operating discipline.
Separately, Daktronics announced Amar G Subas as vice president of international sales, effective October 21, 2026.
MicroLED pullback
Daktronics also said it is reducing microLED-related development activity, citing supply and cost advantages now available with narrow pixel pitch LED technology. The company acquired certain assets of X Display Company Technology Limited in December 2025 and says it will retain that intellectual property for possible future commercialisation. For buyers evaluating next-generation fine-pitch displays, this suggests Daktronics sees conventional narrow pixel pitch LED as the more commercially viable path in the near term rather than microLED.
Daktronics frames all of this as groundwork for fiscal 2028 targets of 7-10% compound annual revenue growth, 10-12% operating margin, and 17-20% return on invested capital. The announcement does not specify how many jobs will be affected in Ireland or at the US factories, or what the lead-time impact will be for customers with orders currently in the pipeline.
The announcement in full
Reproduced from AV Magazine for reference. Digital Signage Magazine did not write the text below.
By AV Magazine in Business , Displays October 21, 2026 0
The company plans to save more than $18m a year with added production capacity in Mexico and China and bring profitability to its international business.
Daktronics is to close a factory in Ireland as part of plans to cut annual costs by more than $18m. The phased closure is expected to be substantially complete by autumn 2027.
The LED display manufacturer last week said it is working closely with customers to fill outstanding orders and build sufficient inventory to meet warranty and service obligations.
Daktronics said it is realigning production capacity among its US, Chinese and Mexican locations. A new facility in Mexico recently completed its first production run while the company is expanding its manufacturing capabilities in China,with a move to a new 33,000 sq metre leased space for automatable production. The company also aims to reduce the head count at its US factories through voluntary departures and redundancies.
Daktronics said the three remaining countries would serve its live events, high school park and recreation, international and commercial business units, while North American intelligent transportation system orders will primarily be served from the US.
Daktronics president and CEO Ramesh Jayaraman said: “Exiting Ireland and aligning our manufacturing capacity will help us manage factory utilisation across the network more effectively, improve workforce productivity, set the stage for further automation, and streamline procurement initiatives.”
Daktronics will exit the highly customised portions of its international transportation business, which represents 1.5% of its overall revenue, and the company said this was a factor in the closure of its Irish factory. It will also close offices in Hong Kong and Macau, with the important Asia Pacific region served from fewer offices.
Jayaraman added: “We have operated our international segment unprofitably for too long, and this announcement is about both strategic focus and operating discipline.”
Daktronics has since announced the appointment of Amar G Subas as vice president of international sales, effective 21 October 2026.
Daktronics also said it is reducing its microLED-related development activities, due to the supply and cost advantages now available with narrow pixel pitch LED technology. The company had acquired certain assets of X Display Company Technology Limited in December 2025 and will still retain and maintain the acquired intellectual property with a view to future commercialisation.
Daktronics said its restructuring initiatives were aimed at hitting the company’s fiscal 2028 targets of 7-10% compound annual growth in revenue, 10-12% operating margin, and 17-20% return on invested capital.