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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] China's largest electronics company, TCL, has completed the acquisition of LG Display's Guangzhou liquid crystal display (LCD) factory after six months of negotiations.
According to industry reports on Wednesday, TCL announced through a press release that the Guangzhou 8.5-generation LCD production line had officially been transferred to its display subsidiary, CSOT (China Star Optoelectronics Technology).
TCL stated, "We have completed the transaction approval and commercial registration procedures for the shares of LG Display's Guangzhou panel factory (CA corporation) and module factory (GZ corporation)."
Last September, LG Display signed an agreement to transfer the shares of its Guangzhou large LCD panel and module factories to CSOT. The transaction is estimated to be worth 10.8 billion yuan (approximately 2.3 trillion KRW). The two companies plan to finalize the sale price and payment method within this month.
CSOT has renamed the factory "T11" and will begin full-scale production.
According to market research firm TrendForce, with the acquisition of the Guangzhou factory, CSOT will own LCD production lines including two 6th-generation, four 8.5th-generation, one 8.6th-generation, and two 10.5th-generation lines. As a result, CSOT's global market share in large LCD panels (by area) is expected to increase from 19.3% to 22.9%.
With this sale, LG Display will withdraw from the LCD TV panel business. The proceeds from the sale will be used to advance its OLED (Organic Light Emitting Diode) business. Once the sale price is determined, LG Display plans to accelerate efforts to enhance its OLED business competitiveness.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
