LG Display has agreed to sell its majority stake in a Guangzhou-based LCD plant to TCL’s CSOT division for 10.8 billion yuan ($1.54 billion). The sale covers LG Display’s 80% stake in its large LCD panel plant and 100% of its LCD module facility, and is set to be finalized by March 2025. LG Display, a supplier to Apple, stated that the decision aims to sharpen its focus on its OLED operations, where it holds a competitive edge in contrast to the oversaturated LCD market.
This transaction aligns with LG Display’s strategic shift toward its more profitable OLED business. “We plan to focus more on the OLED business to enhance our business competitiveness and build stable profit bases. Also, we expect capital from the (plant) sale to help strengthen our financial stability,” the company said in a statement.
As a result of this sale, LG Display will no longer manufacture LCD panels in China, though it will continue producing large-scale OLED displays. Analysts have indicated that the sale will likely support the company’s financial structure, which has faced pressure following consecutive quarterly losses due to weakened demand for display-based electronics.
Featured Image courtesy of LG Display Newsroom
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