LG Display has announced plans to sell its large LCD panel and module factory in Guangzhou, China, to CSOT, a subsidiary of China’s TCL Group, for 10.8 billion yuan ($1.87 billion). The sale is set to finalize by March 31, 2025, and comes after LG Display increased its stake in the joint venture to 80% by purchasing Skyworth’s shares for 1.3 billion yuan earlier in September.
This move is part of LG Display’s strategic shift to focus on its OLED business, citing weakened competitiveness in the large LCD sector due to limited differentiation and market volatility. The proceeds from the sale will be used to bolster the company’s financial stability and further invest in OLED technology, which offers superior display quality and is in high demand for premium TVs and mobile devices.
Despite exiting large LCD production, LG Display will maintain its high-end LCD business for IT and automotive applications, focusing on low power consumption and differentiated design. The company is also expanding its OLED lineup to capture a larger share of the premium TV and high-end mobile markets.
The divestment reflects the company’s broader strategy to reposition itself amid growing competition from Chinese firms like CSOT, which aims to strengthen its global presence through acquisitions and technological advancements.
