Tomasz Wadowski
LG sells LCD factory in Guangzhou
After several months of negotiations, 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 industry as LG bids farewell to the production of large LCD panels for televisions. The factory, which was previously owned by LG, has now come under the control of TCL's subsidiary CSOT (China Star Optoelectronics Technology). The transaction was valued at nearly 10.8 billion yuan, which is approximately 1.4 billion euros. We are talking about a really serious business deal.
New name, new plans – "T11" begins production, CSOT is gaining strength
The new owners immediately got to work, the factory has been given the new name "T11" and has started full 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 in the global market for large LCD panels (measured by area) will increase from 19.3% to as much as 22.9%. This is a significant amount, especially considering the contracting LCD market and growing competition in the OLED segment.
LG bets everything on OLED
And what about LG? The Koreans do not hide that the sale of the factory is meant to help them focus 100% on OLEDs. (Which are performing really very well, as you can read in our reviews):
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 in order to further spread its wings in another. In the new QNED series televisions, we will therefore find Chinese panels with PFS LED technology. Does this mean that LCD is already a thing of the past? Not necessarily. TCL and other Chinese manufacturers are still investing in this technology because in the lower price segments, LCD panels are still doing well. It can be confidently stated that we are witnessing the end of a certain era. Especially since similar steps are planned by Samsung Display, which intends to focus primarily on OLED and MICRO-LED technology.
