Michał Stekla
LG sells LCD factory in Guangzhou
After several months of negotiations, the Chinese giant TCL has officially taken over the LCD panel factory from LG Display in Guangzhou, China. This is not only a significant step for TCL but also a symbolic moment for the entire LG industry as it definitively bids farewell to the production of large LCD panels for televisions. The factory, which was previously owned by LG, has now passed into the hands of TCL's subsidiary CSOT (China Star Optoelectronics Technology). The transaction was worth nearly 10.8 billion yuan, or about 1.4 billion euros. We are talking about a truly serious business.
New name, new plans – "T11" starts production, CSOT is gaining strength
The new owners immediately got to work, the factory received a new name "T11" and began full-scale production. Thanks to this acquisition, CSOT significantly strengthens its position in the global race for dominance in the LCD panel market. According to data from TrendForce, CSOT's share of the global market for large LCD panels (measured by area) will increase from 19.3% to a whopping 22.9%. That's quite a lot, especially considering the shrinking LCD market and rising competition in the OLED segment.
LG puts everything on OLED
And what about LG? The Koreans aren’t hiding that the sale of the factory is meant to help them focus 100% on OLEDs. (Which, by the way, perform really well, as you can read in our reviews):
The money from the transaction will be used to develop this technology, in which LG already has a strong position – particularly in the premium segment. So, it can be said that LG is closing one chapter to strengthen its wings even further in the next. In the new TVs from the QNED series, we will thus find Chinese panels with PFS LED technology. Does this mean that LCD is now a thing of the past? Not necessarily. TCL and other Chinese manufacturers are still investing in this technology, as LCD panels are still doing well in the lower price segments. It can be confidently stated that we are witnessing the end of a certain era. Especially since similar steps are also planned by Samsung Display, which intends to focus primarily on OLED and MICRO-LED technology.
