LG Display has initiated the administrative process to sell its LCD manufacturing facility in Guangzhou, China, signaling a strategic pivot towards higher-margin OLED technologies. This decision aligns with the South Korean company’s shift away from less profitable LCD TV panels, which it discontinued domestically at the end of 2022.
Recent discussions with the Ministry of Trade, Industry and Energy have set the stage for reviewing the sale, as LG Display sharpens its focus on organic light-emitting diodes (OLEDs) to enhance its business structure. The Guangzhou factory, primarily producing LCD panels for televisions, has attracted interest from several major players in the industry.
Potential acquirers include BOE Technology Group, the largest display maker in China, along with TCL’s subsidiary China Star Optoelectronics Technology (CSOT), and the appliance giant Skyworth. According to sources, approximately four to five parties, encompassing both corporate buyers and financial investors, have expressed interest by submitting letters of intent.
This move underscores a broader industry trend where leading display manufacturers are transitioning towards more advanced and profitable display technologies, like OLED, in response to evolving market demands and consumer preferences. LG Display’s strategic divestiture is poised to streamline its operations and capitalize on the burgeoning OLED market.
