CSOT Secures Priority Negotiation for LG Display's Guangzhou Deal; Poised to Boost Top Three Manufacturers' LCD TV Panel Supply Area to Nearly 70%, Says TrendForce

TCL Group officially announced on August 1st that it has become the priority bidder for LG Display's Guangzhou plant equity deal. Following this, TCL CSOT will engage in exclusive negotiations with LG Display to finalize the transaction agreement. TrendForce reports that if the acquisition is successfully completed, it will boost CSOT's market influence and increase the supply area market share of the top three LCD TV panel makers to nearly 70%.

TCL's announcement stated that if CSOT completes the subsequent procedures, it will have acquired 70% equity in LG Display China and 100% in LG Display Guangzhou. TrendForce notes that since LG Display's Guangzhou plant is its main production base for TVs, this acquisition will not only strengthen CSOT's market influence but also bring more opportunities and challenges.

TrendForce indicates that if CSOT successfully acquires LGD's Guangzhou plant capacity, it is expected to strategically accelerate the increase in TV panel sizes in the market. From a broader perspective, TCL Group could further expand its market share with the acquisition of more resources. However, CSOT's primary challenge after acquiring LG Display's Guangzhou plant will be maintaining existing customers and seeking additional customer resources.

In the past two years, the concentration of LCD TV panel production capacity has continued to rise, with the top three manufacturers—BOE, CSOT, and HKC—attempting to pull the LCD TV panel industry out of its slump this year.

TrendForce also mentions that the closure of Sharp's Gen10 production line in 2025, combined with the time needed to integrate the CSOT acquisition if successful, will help reorganize the industry order next year. Additionally, LG Display's previous investments in the OLED market have been significantly hindered by mounting financial pressures. The sale of the Guangzhou plant is expected to provide funds to focus on relevant investments to meet the needs of its major customers.

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