Samsung Display is about to abandon the production of traditional LCD panels altogether, as anticipated a few months ago, with the intent to focus more on Quantum Dot technology. The Suzhou plant, still engaged in this sector, was officially sold to the Chinese TCL Technology for 1.08 billion dollars.
The transaction, formalized last weekend, ended with the sale of 60% of the capital of a foundry that deals with the front-end processes and 100% of the back-end production line of the Suzhou complex in China. Following the agreement, Samsung Display was also able to acquire a 12.33% stake in TCL Huaxing, pouring $ 739 million into the company's coffers.
TCL can therefore make use of an already established factory, capable of producing 32, 55 and 65 inch LCD panels with a capacity of approximately 3.5 million units per month, without having to resort to further investments for the construction of new factories or production lines.
For its part, Samsung Display instead aims to abandon conventional LCD technology, increasingly less profitable for the South Korean home, focusing more on the development of new QLED and Quantum Dot solutions.