LGD's sale of LCD plant in China draws interest from BOE, TCL

LG Display has initiated the sale process for its LCD-panel factory in China amid a failure to keep up in the market.

LG Display's panel-making factory in Guangzhou, China [LG DISPLAY]

LG Display has initiated the sale process of its liquid crystal panel (LCD) factory in Guangzhou, attracting multiple Chinese suitors including BOE, CSOT and TCL.

The value of the deal could range between 1.5 trillion won ($1.1 billion) to 2.5 trillion won, according to local media outlets.

“The Chinese panel makers interested in purchasing the factory expressed interest as they are conducting due diligence regarding the purchase,” said a source with knowledge of the matter.

LG Display said in an electronic disclosure that it is “exploring diverse ways” to unload LCD-related assets including the Guangzhou factory, although nothing is decided.

Once the acquirer is determined, the panel maker is required to undergo a government review procedure given that LCD is categorized as a national core technology.

The sale comes as Korean display makers are losing ground in the large LCD panel business to competition from price-cutting Chinese rivals.

Samsung Display exited the unprofitable large LCD business back in 2022, while announcing that it will zero in on next-generation organic light-emitting diode (OLED) displays.

LG’s Guangzhou factory was the last remaining large LCD panel-making factory run by a Korean company.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]