LG's China LCD plant sold for $1.5 billion — focus moves to OLED
Sold to TCL's CSOT unit according to a regulatory filing
Once a thriving business to replace the traditional CRT displays from the top of our desks, the LCD technology is seemingly now a liability for South Korean companies like LG and Samsung. This week LG Display inked a deal to sell its China-based LCD plant in a bid to focus on it more profitable OLED business, reports Reuters.
LG Display is selling its majority stake in its Guangzhou, China LCD plant to TCL's CSOT unit for 10.8 billion yuan ($1.54 billion), the report claims citing a regulatory filing. The deal includes LG Display's 80% stake in the LCD panel facility and full ownership of the LCD module assembly plant. The plant, originally a joint venture with Guangzhou Development District and Skyworth holding company, then a majority-owned by LG Display, was created to produce large LCD panels, but LG Display no longer sees itself in this business, according to Korea Economic Daily Global.
The transaction is expected to finalize by March 2025, then LG is set to focus entirely on its OLED business, where it holds a competitive edge. The company sees greater long-term potential in OLED panels, which are used for premium displays, including small-sized for smartphones, mid-sized for laptops and desktop PCs, and large-sized for TVs.
Once the sale is complete, LG Display will continue to produce large OLED panels in China, so this is not an business exodus from China, rather a consolidation of businesses.
LG Display plans to use the proceeds from the sale to strengthen its OLED operations and improve its financial stability in a bid to be more competitive on this side of the display business with multiple companies, including Samsung Display and, CSOT. The company has been scaling up its OLED production in recent years and with additional funds, it can scale up production. As demand for OLED technology increases, LG Display aims to bolster its leadership in this space, especially for large applications, so $1.54 billion will be most welcome.
Reuters points out that LG Display has been experiencing quarterly losses, largely due to a slump in demand for LCD display panels used in consumer electronics (i.e., iPhones first switched to Japan-based Sharp controlled by Foxconn and then dumped LCDs). The sale of the Guangzhou LCD plant is seen as a strategic step to improve its financial health and invest in future growth.
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Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.
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Marnad After purchasing an OLED a few years back, I just can't return to any type of LCD or QLED, lol.Reply
Currently using a 55" LG C1 for PC and PS5 gaming. The response time and contrast just seem unmatched. -
jp7189
I've been thinking about an OLED TV as PC monitor but have hesitated for burn-in concerns. I hear it's better than it was, but that it's still a thing and to expect it in 3 year or less.Marnad said:After purchasing an OLED a few years back, I just can't return to any type of LCD or QLED, lol.
Currently using a 55" LG C1 for PC and PS5 gaming. The response time and contrast just seem unmatched.
It sounds like you have some specific, relevant, firsthand knowledge. What are your thoughts? Do you take any specific precautions to limit burn-in? -
Marnad jp7189 said:I've been thinking about an OLED TV as PC monitor but have hesitated for burn-in concerns. I hear it's better than it was, but that it's still a thing and to expect it in 3 year or less.
It sounds like you have some specific, relevant, firsthand knowledge. What are your thoughts? Do you take any specific precautions to limit burn-in?
I try not to worry about it too much and just enjoy the experience. Mind you, I’m referencing gaming only - I have both an LED and OLED for my PC (I use the LED monitor for work tasks).
If a game allows the HUD to be toggled off, but also provides a shortcut key to check it (ex: Red Dead Redemption 2), I’ll use that option.
The LG OLEDs offer pixel shift, logo dimming, and pixel cleaning to mitigate burn-in. I’ve also heard some of the Digital Foundry staff say they’ve had no burn-in problems even with the older LG CX models.
Overall, as they say, as long as you’re not keeping the same content on for 8+ hours a day (with static logos/HUD), you should be fine.
LG OLEDs may be less susceptible to burn-in, due to their sub-pixel arrangement (I’d advise you to research and verify).
It’s my personal opinion, but the beauty and response time of an OLED are well worth the purchase. -
gg83 Why are oleds going up in price the last few years? I got a 65inch sony a80j for $1200. Now I can get a 42inch ld oled for the same price. It makes zero sense. It's not like the quality is that much improved.Reply -
TheHerald
Burn in is largely a non issue. Had a 42jp7189 said:I've been thinking about an OLED TV as PC monitor but have hesitated for burn-in concerns. I hear it's better than it was, but that it's still a thing and to expect it in 3 year or less.
It sounds like you have some specific, relevant, firsthand knowledge. What are your thoughts? Do you take any specific precautions to limit burn-in?
" c2 for 2 years as a pc monitor, no issues.
I had black background and auto hide Taskbar, and also turned off the screen after 1 minute of no usage, and that's it. -
DS426 I'm waiting for MicroLED displays to take off. They say burn-in isn't happening as quickly on newer OLED's, but I'm still not satisfied. I buy a good monitor and then use it for 5-7 years, eventually giving it away as a hand-me-down to a family member or friend. I don't know that I could get that from OLED as I do play some games that might only have a small area of the display changing regularly. On a TV, I don't see this as an issue as most to all pixels are changing fairly frequently when watching video, be it movies, shows, or whatever.Reply
I'm sure LG Display needs to increase OLED factory capacity to meet future demand, but I'd also expect them to say more about investing in mLED. -
husker
There actually have been several improvements over the last year. Newer Gen 3 OLED panels have improved brightness, pixel density, durability (lifespan), and power efficiency. The sub-pixels are also a different shape and density which, for example, allows for clearer text. I'm sure there are other improvements as well but that's a few off the top of my head.gg83 said:Why are oleds going up in price the last few years? I got a 65inch sony a80j for $1200. Now I can get a 42inch ld oled for the same price. It makes zero sense. It's not like the quality is that much improved. -
Co BIY gg83 said:Why are oleds going up in price the last few years? I got a 65inch sony a80j for $1200. Now I can get a 42inch ld oled for the same price. It makes zero sense. It's not like the quality is that much improved.
Inflation ? -
OneDegreeOffCenter Maybe it's a win for TCL.Reply
I was forced with the decision of 65ish OLED or a 98" with Google TV. Fortunately I had an ideal location for a BIG ASS TV. After reading all the reviews on picture quality - I went big. I was able to catch the TCL S5 98" on sale for $1999. I consider the picture quality to be excellent. Blacks are plenty dark, whites can be blinding, Have I seen OLED look better? Yes absolutely.
But when my neighbors come over to visit, I can't imagine them saying "Those are some amazingly dark blacks". But they do say "thats a BIG ASS TV". :) -
zsydeepsky I personally prefer MiniLED for big monitors.Reply
for the balance between the cost and results, and it delivers the feeling of "bright sun light" which big screen OLED can't.
but for small screens...OLED is the best choice for sure.