On April 1, TCL CSOT held a grand flag-raising ceremony at its T11 base in Guangzhou, marking the official takeover of LG Display’s (LGD) Guangzhou factory.
According to TCL CSOT’s official social media, this merger brings two key advantages for the company’s future development:
- Strengthening Technological Leadership in IPS: By acquiring LGD’s IPS patent technology and production capacity, TCL CSOT will further expand its IPS customer channels and enhance its overall technical capabilities and market competitiveness.
- Expanding Global LCD Capacity: TCL CSOT’s LCD panel capacity will increase to approximately 26% of the global market share. The company currently operates 8 LCD panel factories (ranging from Gen 6 to Gen 11 lines). With the addition of LGD’s Gen 8.5 line (primarily producing TV panels), TCL CSOT’s total LCD factories will grow to 9, including 7 large-size (Gen 8.5 and above) facilities.
This move not only significantly boosts TCL CSOT’s competitiveness in the global LCD TV panel market but also accelerates the consolidation of the industry around leading Chinese manufacturers, strengthening China’s influence in the global display sector.
Strategic Significance of the Integration
- LGD CA: A Gen 8.5 LCD fab with key technologies like IPS, designed for a monthly capacity of 180,000 panels.
- LGD GZ: A supporting module factory with a monthly capacity of 2.3 million units.
Both facilities demonstrated strong profitability in 2023, with net profits of RMB 602 million and RMB 536 million, respectively.
At the ceremony, Zhang Feng, Senior Vice President of TCL CSOT, emphasized that the event symbolized the confidence of China’s display industry in going global, the trust of global partners, and the expectations of billions of users for superior visual experiences. He called on employees to embrace innovation and collaboration to “write a Chinese legend in the global display industry.”
Technology and Production Synergies
TCL CSOT, previously focused on vertical-alignment HVA panels in large-size LCDs, will now integrate LGD’s IPS technology to optimize its product portfolio, meeting market demands for wide viewing angles and color accuracy. The combined HVA, HFS, and IPS technology matrix will enable differentiated solutions for diverse applications. This integration will also accelerate product iteration and enhance TCL CSOT’s patent portfolio.
Post-merger, TCL CSOT plans to expand production scale while leveraging the T11 factory’s mature processes and management systems to improve efficiency and quality control. Through cluster advantages and multi-technology R&D, the company aims to solidify its leadership in efficiency, product innovation, technology, and ecosystem development.
Long-Term Vision
TCL Corporation stated that the acquisition will deepen international client partnerships, enhance industrial synergies, and boost long-term profitability. With the smooth handover, TCL CSOT is poised to strengthen its global position in semiconductor display and achieve greater success in future market competition.
