Many technology companies are looking for ways to offer the best possible quality in each of their products, and the ability of some to make the best products is often limited by the manufacturing plants they have with other types of technologies that can be less. profitable. This is what happened to LGa company highly recognized for having been one of the leading companies in the development of screens for all types of devices and which now wants to focus on the manufacturing of OLED panels.
OLED technology offers exceptional quality and is becoming more and more common in a large number of devices, largely due to the priority that many companies are placing on making this type of displays a standard . From LG One of their plans is to offer manufacturing focused on this type of displays, and this is the main reason that led them to sell the largest manufacturing plant in the country. LCD Panels that they had in China one of the biggest companies in the Asian market in terms of products that are priced much lower, TCL.
LG sells its LCD manufacturing plant in China to focus on OLEDs
One of the latest movements that we have seen regarding the screen market in general is led by LG, namely that the South Korean brand has reached an agreement with TCL to sell them his factory LCD Panelsfor a fairly high price, although it is clear that they can easily make it profitable. In this case, the two companies have reached an agreement that will end with the incorporation of the factory located in Guangzhou into the TCL structure in March 2025, when the transaction valued at $1.54 billion will end.
The South Korean company does not consider it a truly viable business to continue manufacturing LCD screens, and this is one of the main reasons why it wants to move to manufacturing focused only on those that are OLED, because as as we know, practically all of their products are currently focused on this type of technology. This does not imply that LG will abandon factories in China, since it will continue to manufacture panels that use superior technology in this country in the various factories that the Asian country still has.
In this case, one of LG’s objectives with this sale is to improve its financial stability, since in recent quarters they have presented losses due to the drop in demand for LCD panels. In this way, they will seek to use the proceeds from the sale to strengthen their OLED operations by further increasing their production, which has already seen considerable growth in recent years, trying to strengthen their leadership in this area, especially for applications which have this type of screens on large devices.
