The LCD plant of LG in China will be acquired by Samsung

Recently, Samsung Display and BOE were engaged in a patent dispute. The South Korean conglomerate Samsung even sued BOE and its subsidiaries for patent infringement. According to some recent pieces of information, Samsung Electronics is attempting to exert as much control over the supply chain as it can in an effort to restrain BOE. The South Korean company is attempting to purchase LG Display’s Chinese LCD panel production facility in a recent move.

Samsung intends to exclude BOE from its supply chain

With the help of CSOT (Chinese firm), Samsung might acquire LG’s LCD plant in Guangzhou, China, claims a report from South Korea. Reportedly, BOE is also trying to acquire the same plant. It appears that Samsung Electronics wants control over LG’s LCD facility in part because it wants a consistent and high-quality supply of LCDs for its QLED TVs. According to reports, the South Korean company owns 10.38% of CSOT.

In the past, the plant was purchased by the Chinese firm Skyworth. However, the deal couldn’t close and was canceled after some time. Reportedly, Skyworth was unable to pay a lump sum amount to LG Display. According to the information, the LCD plant is valued at KRW 1 trillion ($776 million). Following the collapse of the Skyworth agreement, LG Display has been in talks to sell its display plant to BOE and CSOT.

Panels for LG, Samsung, and Sony are produced at LG Display’s LCD facility in China

The LCD plant has two lines: GP1 and GP2, with 100,000 and 200,000 sheet capacities, respectively. Reportedly, the plant manufactures LCD panels for LG, Sony, and Samsung. Following the acquisition, LG Display appears to have provided support for two to three years. Wider viewing angles are also possible with LG’s IPS LCD technology.

Although the premium TVs by Samsung use Micro LED, OLED, and QD-OLED, the entry-level and mid-range still rely on LCD-based QLED technology. For this reason, the company is interested in acquiring the plant with the help of CSOT in order to ensure that its supply chain is stable. All in all, the company desires to access high-quality panels at decent prices.