LG sells LCD display factory in China for $1.5 billion

LG Display is moving towards the future and has decided to sell one of its main LCD display factories in China to TCL CSOT. The manufacturer’s plan is to focus on the production of OLED screens – which will be the center of its business from now on.

According to Reuters, regulatory bodies point out that the agreement was made for $10.8 billion yuan – equivalent to $1.54 billion dollars. The contract involves LG Display’s 80% participation in the installation of the LCD panel and full ownership of the LCD module assembly factory.

Originally the LCD factory in China was a joint effort by Guangzhou Development District and Skyworth – with majority ownership by LG Display – to create and produce large LCD panels. However, with the change in focus, they no longer wish to work with this format.

The transaction between LG Display and TCL is expected to be completed in March 2025, thus moving all of its operations to the OLED business – where there is currently greater competition.

LG’s choice of OLED displays

LG is seeing great long-term potential for OLED displays, with the material being used in a range of “premium” products – from smartphones, notebooks and desktop monitors to even modern televisions.

The manufacturer will continue to produce its OLED panels in China, so this means that the sale is not an attempt to exit the country or reduce its operations there. It’s closer to being a “consolidation” of your focus from here on out.

This could also represent changes after several quarterly losses were reported by LG Display – with the drop in demand for LCD panels in the electronics area. This can be a strategic step to regain your financial health and attract investments for more profitable growth.

Furthermore, with this focus, they also become more competitive against other manufacturers that work with OLED displays – such as Samsung and CSOT.

Source: Tom’s Hardware