Tech Desk
Sep 29, 2024
In a strategic move to strengthen its position in the LCD market, TCL China Star Optoelectronics Technology (CSOT) has confirmed its ongoing discussions to acquire a significant stake in LG Display (LGD) China operations.
Following the acquisition, TCL Technology’s subsidiary will get an 80% stake in display panel maker LG Display China and a 100% stake in LG Display Guangzhou for $1.512 billion (10.8 billion yuan).
According to TCL Technology, the deal will help optimise resource allocation, improve efficiency, and reduce operational costs, providing the company with long-term profitability.
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While the 8.5-generation plant of LG in Guangzhou primarily focuses on producing large-sized LCD panels for TV screens it is expected to provide with around 14 million units in 2024, mainly focusing on panels 55 inches and above.
With this acquisition, TCL CSOT will emerge as a dominant player in the large-sized LCD panel market, by enhancing its production capacity.
However, the South Korean tech giant LG Display (LGD) revealed its plans to shift the stake of its LCD panel and module factories in Guangzhou, Guangdong province to TCL with the deal expected to be completed by March 31, 2025.
The deal also aligns with the company’s strategy to shift away from the traditional LCD market and focus more on the profitable OLED business which has been emerging lately, particularly in premium display applications, remaining competitive in this rapidly evolving market, stated LG Display.
Additionally, TCL’s market share is also set to surge, with CSOT’s share in large-generation LCD production surpassing 20%, becoming the second-largest company in the sector worldwide.
However, by 2026, TCL’s market share is expected to climb to 23.9%, coming in competition with the industry leader in manufacturing displays, BOE, which currently holds 27%.
