Samsung Display has sold a large LCD factory in Suzhou, China to TCL. This sale is in line with Samsung Display’s strategy to stop the production of LCDs and, for example, to focus on the production of quantum dot OLED panels.
According to Business Korea, Samsung Display has entered into an agreement with TCL Huaxing to dispose of its entire stake in the production line and associated factory. TCL Huaxing is part of parent company TCL Technology; the latter makes, among other things, televisions, mobile telephones and other electrical appliances. The sale would cost a billion dollars.
TCL was already seen as a key candidate for the Suzhou plant, as the company already had a ten percent stake in the plant through its CSOT division. There will probably still be cooperation between Samsung and TCL, as Samsung Display also took a 12.3 percent interest in TCL Huaxing for $ 739 million.
Samsung Display announced earlier this year that it would stop producing LCDs. Margins in this market have been under considerable pressure for some time, mainly due to the production of LCD panels by Chinese manufacturers. The losses accumulated on this part at Samsung Display. The company still has production capacity for making LCD panels in Asan, South Korea.
In addition, Samsung Display wants to focus more on the production of quantum dot OLED panels, among other things. Next year, the company should start production of these panels, which should lead to OLED TVs with panels with blue OLEDs and quantum dots. Samsung Electronics will continue to make LCD televisions, but will increasingly turn to external Chinese manufacturers for the panels required for this.