TCL acquires LG Display's Guangzhou plant, and CSOT's LCD large-generation production capacity market share will remain second

TCL Group officially announced on September 26 that it plans to acquire LG Display's 8.5-generation LCD panel plant in Guangzhou (including the 10% held by Shenzhen Chuangwei) and 100% of the module plant through its subsidiary TCL Huaxing Optoelectronics (CSOT) at a basic purchase price of RMB 10.8 billion, as well as the technology and support services required to operate the two plants.

Currently, Guangzhou Hi-Tech Zone Technology Holding Group holds a 20% stake in LG Display's Guangzhou plant. It is reported that the merger will be completed in the first half of 2025. TrendForce said that in the future, CSOT's market share in the area of LCD large-generation line production capacity will exceed 20% in one fell swoop, ranking second in the industry.

LG Display's Guangzhou 8.5-generation line is mainly used to produce TV panels. In 2024, the plant's shipments will be about 14 million pieces, of which more than half are concentrated in 55-inch or larger products.

TrendForce said that once the merger is completed, CSOT will occupy more than a quarter of the TV panel market (by area), pushing the market share of the top three panel manufacturers to nearly 70%.

TrendForce pointed out that from the perspective of the panel industry, this transaction extends the potential possibility of supply chain sector shifts, such as whether Samsung Electronics will expand its cooperation with BOE, or whether LG Electronics will have further cooperation opportunities with CSOT in the future. In addition, after the merger is completed, how CSOT optimizes the production cost of the plant in the next one to two years will be its key issue. As CSOT's influence in the industry increases, whether it has the opportunity to use its production capacity advantage to accelerate size enlargement will also be the focus of future LCD TV panel supply and demand.