LG is preparing to sell its last LCD factory to devote itself fully to OLED technology. This strategy echoes that of Samsung a few years ago. OLED now seems to be in a position to establish itself as the future of TV, but LCD is still putting up resistance from Chinese manufacturers.
TCL continues to focus on LCD
In 2020, the CSOT Group (China Star Optoelectronics Technology), a subsidiary of TCL, bought Samsung’s LCD plant in Suzhou, China. This strategy enabled the Korean manufacturer to leave this market completely by 2022, and concentrate on its QLED technology, followed by OLED. LG Display could follow the same path with the possible sale of its last Chinese factory dedicated to LCD TVs.
According to the Korea Times, LG is currently negotiating the sale of its LCD plant in Guangzhou, China. The future buyer would once again be the Chinese group CSOT, which would be able to accelerate production of screens for laptops and monitors, as well as expand the offerings of its subsidiary TCL. TCL has become one of the main players in the LCD sector, with 25% of global production following its takeover of the LG factory. The manufacturer is counting on these LCD panels to produce very large TVs while limiting development costs, as in the case of the latest TCL 98XMQLED98 with a 2.5m screen.
Leaders turn to OLED
According to the Korea Times, initial negotiations between LG Display and CSOT range from 1,000 to 2,000 billion won, or between $737 million and $1.47 billion. This will enable LG to reinvest massively in the OLED sector, where growth is significantly higher. A new OLED production line could be set up in South Korea to equip not only LG TVs, but also rival brands such as Panasonic, Philips, Loewe, Samsung and Sony, which use LG OLED panels. So, even if Chinese manufacturers are putting up resistance, all eyes of the industry’s major players seem to be on OLED technology for the future of TV.
