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LG Display transfers 8.5-gen LCD plant in Guangzhou to TCL CSOT for $1.52billion

LG Display has sold its 8.5-gen LCD production line in Guangzhou to TCL CSOT for $1.52 billion, enhancing TCL's production capacity while LG shifts focus to OLED technology. The deal, approved last September, included robust profitability of the facilities with 2023 net profits reaching $84.28 million and $75.04 million.

Key points

  • LG Display transferred its 8.5-gen LCD production line and module factory to TCL CSOT for $1.52 billion.
  • The facility is now named T11 and increases TCL CSOT's production capacity to nine LCD lines.
  • The sale was approved by LGD's board in September as part of its strategic shift towards OLED technology.
  • The facilities sold were profitable, reporting net profits of $84.28 million and $75.04 million in 2023.

Why it matters

  • The shift towards OLED technology by LG Display aligns with the global trend of manufacturers preferring OLED over LCD due to better performance.
  • TCL CSOT's acquisition supports China's push in the display technology industry, part of the larger context of tech competition between China and South Korea.
  • The transaction reflects consolidation trends in the global display market as companies streamline operations amid rising costs and competition.

This strategic move highlights LG Display's commitment to pivot towards OLED while reinforcing TCL CSOT's capabilities, reflecting ongoing evolutions in the display technology market.