LG is ending classic TVs. Plants sold to the Chinese
LCD technology is already prehistory and no one is interested. Technology giants and consumers are gradually switching to more modern matrices.
LG Display is one of the leading manufacturers that produces matrices not only for its own needs, but also for third parties. They go to TVs, monitors and smartphones. However, Koreans no longer believe in LCD technologyand instead want to focus on more future-proof ones OLED.
LG Display is not withdrawing from production in China
As a result, the South Korean giant is selling its majority shares in the factory in Guangzhou (China). He will take over CSOTbelonging to TCL for 10.8 billion renminbi, the equivalent approximately PLN 5.9 billion. The transaction includes 80% of shares in the LCD panel factory and full ownership of the module assembly plant.
It is expected the transaction will be finalized by March 2025. After the sale ends, LG Display will continue to produce OLED panels in China, so This is not a business exodus from the Middle Kingdom.
The funds obtained will allow the Koreans to strengthen their position on the market increasing the production of new types of dieswhich come from premium devices and offer higher profits. The biggest competitors in this respect are CSOT and Samsung Display.
Reuters indicates that LG Display reports quarterly lossesmainly due to the decline in demand for LCD panels used in consumer electronics. The transfer of Apple’s iPhone screens to the Japanese Sharp was a big blow. The sale of the factory in China is seen as a strategic move to improve its financial health and invest in future growth.
