TCL Huaxing takes over LGD Guangzhou factory and opens up a new pattern for the display industry

On April 1, TCL China Star held a solemn and grand flag-raising ceremony at the T11 base in Guangzhou, officially completing the takeover of the LGD Guangzhou factory. This move has attracted widespread attention in the display industry. According to TCL China Star's official Weibo, this merger will bring many significant advantages to the future development of TCL China Star.

Technical level: Strengthen IPS advantages and broaden customer channels
In terms of technology, TCL China Star successfully incorporated LGD's IPS patented technology and related production capacity through this acquisition. This integration will further consolidate TCL China Star's strength in the IPS technology field and broaden its customer channels on the IPS side. Previously, TCL Huaxing mainly cultivated vertically arranged HVA panels in the field of LCD large size. Through this integration of LGDCA's IPS production capacity and technology, it can continue to optimize its product structure. The full-scene technical matrix built by TCL Huaxing covering HVA, HFS, and IPS will better meet the diverse technology and product needs of different fields and different scenarios for wide viewing angles, color accuracy, etc., and provide more differentiated customers around the world. solution. The deep integration and innovation of technology will not only help TCL Caxing accelerate product iterative upgrades, but will also encourage it to optimize its patent portfolio and comprehensively consolidate the company's competitiveness in the industry.
Capacity expansion: Increase global share and enhance industry voice
From the perspective of production capacity, TCL China Star's LCD production capacity will experience a significant expansion. TCL Huaxing originally owned 8 LCD panel factories, covering 6th to 11th generation lines. The LGD factory acquired this time is an 8.5-generation line and mainly produces TV panels. After the completion of the merger, TCL Huaxing's LCD panel factories will increase to nine, of which the number of large size (8.5th generation line and above) factories will increase to seven, and its LCD production capacity accounts for about 26% of the world's total. This will not only significantly enhance TCL China Star's competitiveness in the global LCD TV panel market, but will also promote the further concentration of market share to top manufacturers in mainland China, effectively enhancing China's voice in the global display industry.
TCL China Star officially introduced that this strategic integration is of great significance. As a large-scale LCD panel factory of the 8.5 generation, LGDCA has a number of key display technologies including IPS, with a designed monthly production capacity of 180K; LGDGZ is a supporting module factory with a designed monthly production capacity of 2.3 million units. The two factories are of high overall quality and excellent profitability. The net profit in 2023 will reach 602 million yuan and 536 million yuan respectively.
During the takeover event that day, Zhang Feng, Senior Vice President of TCL China Star, delivered a speech to the leaders and employees attending the ceremony. He pointed out that the red flag rising today carries the firm confidence of China's display industry to move towards the world, embodies the deep trust of global partners, and also embodies the ardent expectations of hundreds of millions of users for a better visual experience. All employees should take this moment as a new starting point, uphold the eagle-like spirit of innovation and breakthrough, explore the future with a broad vision like the stars and the sea, and jointly write a glorious chapter in China in the global display industry.""""

TCL Technology clearly stated in the announcement that this transaction will help further enrich semiconductor display production line technology, deepen strategic cooperation with international customers, enhance industrial synergies and scale advantages, and improve long-term profitability. With the smooth delivery of the factory, TCL China Star's position in the global semiconductor display field will be further consolidated. In the fierce market competition in the future, it is expected to achieve more excellent results and continue to lead the development trend of the industry.