TCL Group has made a significant move to dominate the LCD market by announcing the acquisition of LG Display’s 8.5-generation LCD panel plant in Guangzhou and its module factory.
This CNY 10.8 billion ($1.54 billion) deal, expected to close in the first half of 2025, will be carried out through TCL’s subsidiary, China Star Optoelectronics Technology (CSOT). The Guangzhou High-Tech Zone Technology Holding Group will retain the remaining 20 percent of the plant.
This acquisition is expected to boost CSOT’s production capacity, positioning TCL as a formidable player in the global LCD industry. With the 8.5-generation plant primarily producing large TV panels, TCL will have the capacity to churn out 14 million units in 2024, including a significant number of 55-inch and larger panels. Post-acquisition, TCL’s market share in large LCD production is expected to surpass 20 percent, making it the second-largest player in the sector globally.
Industry analysis by TrendForce forecasts that CSOT will supply over 25 percent of the world’s TV panels by area, contributing to an increase in the top three panel manufacturers’ combined market share to nearly 70 percent. The move is seen as a game-changer for TCL, allowing the company to increase its presence in the high-demand segment of larger panel sizes, essential for future growth in the TV market.
Despite this leap, the acquisition poses potential challenges. LG Display’s Guangzhou plant has many South Korean clients, creating potential overlap with CSOT’s current customer base. This could prompt customers to diversify their supply chains, which might affect CSOT’s ability to retain orders. Rivals like Samsung Electronics and LG Electronics may seek new partnerships to mitigate reliance on CSOT.
LG Display’s decision to sell is part of its strategy to exit the increasingly saturated LCD market and focus on its more profitable OLED business.
By selling its LCD assets, LG Display plans to strengthen its financial stability and concentrate on its competitive edge in the OLED segment, where demand for premium display technology is growing.
The capital from the sale is expected to provide a much-needed boost to the company, which has faced quarterly losses due to reduced demand for display panels used in electronic gadgets.
LG Display earlier this month presented its Stretchable displays, which can be freely stretched, folded, and twisted, at 2025 S/S Seoul Fashion Week.
