TCL is set to “significantly grow TV market share” after LG Display who is struggling to make a profit sold a key manufacturing plant to the Chinese TV Company.
Last week we disclosed that LG Display sold the plant for $1.5 billion , as they look to rationalise asset in an effort to raise much-needed capital to stabilise its financials, following multiple quarters of losses.
Now analysts are tipping that TCL’s market share is set to surge, with the Company’s CSOT subsidiary share in large-generation LCD production surpassing 20%, making it the second-largest player in the sector globally.
By 2026, CSOT’s market share is projected to climb to 23.9%, consolidating its influence alongside Chinese manufacturer BOE, which currently holds 27% in the LCD market and is challenging LG in the OLED market.
Combined, these two Chinese manufacturers will control a commanding portion of the global LCD market, as brands such as TCL and Hisense push their Micro LED, Mini LED and QLED display technology with TCL now able to expand product at the expense of LG Display.
This acquisition is expected to have a profound impact on TCL’s position in the global display market.
The 8.5-generation plant in Guangzhou is primarily focused on producing large-sized LCD panels, which TCL can use to manufacture their LCD display screens.
It’s estimated the Company will manufacture 14 million units in 2024, with a significant portion of the production focusing on 55 panels which will be supplied to multiple brands who use TCL and their subsidiaries to manufacture TV’s.
Among the brands who use TCL OEM production services are Samsung, Sony, LG and Philips.
By acquiring these assets, TCL CSOT will not only enhance its production capacity but also position itself as a dominant player in the large-sized LCD panel market.
In Australia LG is suffering because they have cut their ranging and are concentrating on the premium TV market their shift from LCD TV’s to OLED represents a strategic refocusing for LG Display who are desperate to be competitive as new Chinese players enter the OLED market a move that has not gone unnoticed by the South Korean Government who is looking to help both Samsung and LG hold onto share and that the two brands remains competitive in a rapidly evolving market.
By shedding its LCD operations, LGD can now dedicate more resources to OLED technology, which the business is punting on to drive future profitability as consumer demand for premium displays continues to rise and brands such as Apple and automotive manufacturers look to expand their OLED display purchases.
The only problem is that a high number of LG Display’s South Korean clients overlap with CSOT’s existing customer base, potentially prompting shifts in supply chains as brands like Samsung Electronics and LG Electronics may seek alternative suppliers especially as LG Display is seen as being an expensive option.
