TCL Acquires LG Display’s LCD Plants in Guangzhou as Industry Consolidates

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The acquisition of the LG Display plants will expand the company’s share of global LCD production capacity to 25.2% by 2025

TCL Technology Group Corp. (000100.SZ), a leading Chinese electronics maker, has agreed to pay 10.8 billion yuan ($1.54 billion) to acquire LG’s two display factories in Guangzhou, as Chinese manufacturers strengthen their dominance in the liquid crystal displays (LCD).

TCL China Star Optoelectronics Technology (TCL CSOT), a subsidiary of TCL Technology, will acquire 80% of LG Display China and the entire stake of LG Display Guangzhou. The purchase will also include LG Display’s related technology and supportive services.

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TCL Technology Group Corp. will pay 10.8 billion yuan ($1.54 billion) to acquire LG’s two display factories in Guangzhou, expanding its LCD market share.
TCL CSOT, a subsidiary of TCL, will gain 80% of LG Display China and all of LG Display Guangzhou, enhancing its position in the global LCD industry.
The acquisition is expected to significantly increase TCL CSOT's global LCD production capacity to 25.2% by 2025, consolidating Chinese dominance in the market.

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Who’s Who

TCL Technology Group Corp.: TCL Technology Group Corp. (000100.SZ) is a leading Chinese electronics maker. Its subsidiary, TCL China Star Optoelectronics Technology (TCL CSOT), has agreed to pay 10.8 billion yuan ($1.54 billion) to acquire LG's two display factories in Guangzhou. The acquisition includes 80% of LG Display China and the full stake of LG Display Guangzhou, along with related technology and services. This move will significantly enhance TCL CSOT's global LCD production capacity.

TCL China Star Optoelectronics Technology (TCL CSOT): TCL China Star Optoelectronics Technology (TCL CSOT) is a subsidiary of TCL Technology Group Corp., focused on liquid crystal displays (LCD). It is set to acquire 80% of LG Display China and the entire stake of LG Display Guangzhou for 10.8 billion yuan ($1.54 billion). This acquisition, including related technology and services, will increase TCL CSOT's global LCD production capacity to 25.2% by 2025, enhancing its status in the industry.

LG Display China: LG Display China produces 8.5-generation large-sized liquid crystal displays primarily for televisions and commercial display equipment, with a designed monthly capacity of 180,000 units. In 2023, the company reported revenue of 6.3 billion yuan and a net profit of 602 million yuan. TCL China Star Optoelectronics Technology (TCL CSOT) will acquire 80% of LG Display China as part of a larger purchase of LG’s display factories in Guangzhou.

LG Display Guangzhou: LG Display Guangzhou is a producer of LCD modules. In 2023, it reported revenue of 11.9 billion yuan and a net profit of 536 million yuan. The company is included in TCL China Star Optoelectronics Technology's acquisition from LG.

BOE Technology Group Co. Ltd.: The article mentions BOE Technology Group Co. Ltd. as the industry leader in global LCD production. By 2025, combined with TCL CSOT, BOE is expected to account for 52.6% of global LCD production. This indicates BOE's significant influence and leading position in the LCD market as Chinese manufacturers expand their dominance.

Samsung: The article mentions that the panel industry downturn in 2022 prompted South Korean giants Samsung and LG Display to accelerate their shift toward advanced OLED panels, indicating Samsung's strategic move away from liquid crystal displays (LCD) to focus on more advanced technology.

LG Electronics: The article does not provide specific information about LG Electronics. It mainly discusses the acquisition of LG Display’s factories by TCL Technology Group Corp. LG Display supplies major clients including Samsung, LG Electronics, Skyworth, and KTC, with facilities accounting for nearly 6% of global 8.5-generation LCD production.

Skyworth: Skyworth is mentioned as one of the major clients of LG Display’s Guangzhou facilities, which produce 8.5-generation large-sized liquid crystal displays (LCDs) used for televisions and commercial display equipment. The facilities account for nearly 6% of global 8.5-generation LCD production, and Skyworth benefits from this supply chain.

KTC: The article notes that KTC is one of the major clients of LG Display's Guangzhou facilities, which account for nearly 6% of global 8.5-generation LCD production.

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What Happened When

2023：: LG Display China reported revenue of 6.3 billion yuan with a net profit of 602 million yuan.

2023：: LG Display Guangzhou reported revenue of 11.9 billion yuan with a net profit of 536 million yuan.

By March 31, 2024：: Expected closing date of the transaction between TCL Technology and LG Display.

2024：: TCL CSOT's share of global LCD production capacity is 19.7%.

Early August 2024：: TCL Technology and LG Display announced that TCL CSOT was the preferred bidder for LG Display's LCD production facilities in Guangzhou.

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