Michał Stekla
LG sells LCD factory in Guangzhou
After several months of negotiations, Chinese giant TCL has officially acquired the LCD panel factory in Guangzhou, China, from LG Display. This is not only a significant step for TCL but also a symbolic moment for the entire industry as LG definitively 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, or about 1.4 billion euros. We are talking about a really serious business.
New name, new plans – "T11" begins production, CSOT grows stronger
The new owners immediately got to work, the factory received a new name "T11" and 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 of the global market for large LCD panels (measured by area) will increase from 19.3% to as much as 22.9%. This is a substantial increase, especially considering the shrinking LCD market and the growing competition in the OLED segment.
LG bets everything on OLED
And what about LG? The Koreans are not hiding that the sale of the factory is 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 – especially in the premium segment. So it can be said that LG is closing one chapter to strengthen its wings in the next one. In the new televisions from the QNED series, 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 LCD panels continue to do well in 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.
