The selling price of LGD Guangzhou LCD factory may be higher than expected
文章來源:華云視界 發(fā)表時間:2024-05-24The acquisition battle for LG Display's LCD (liquid crystal display) factory in Guangzhou, China is becoming increasingly fierce. Industry insiders believe that the final selling price may be higher than expected. Obviously, LG Display is determined not only to obtain appropriate value at the time of sale, but also to firmly adhere to this intention.
According to Korean media Chosun, industry sources say that, LG Display has recently begun negotiations with the South Korean Ministry of Industry, Trade and Resources regarding the sale of the Guangzhou LCD factory in order to initiate the approval process. This is to reduce the proportion of low profit LCD business and shift the business structure towards organic light-emitting diodes (OLEDs).
The LG Display Guangzhou LCD factory has a monthly production capacity of 300000 pieces and high-level technical strength, which is highly attractive to Chinese enterprises. According to market research firm Omdia, based on area, BOE of China accounted for 27.2% of the global LCD market in 2023. If the Guangzhou factory is acquired, it can ensure a market share of nearly 30%. If CSOT acquires the Guangzhou factory, its market share is expected to increase from 17.7% to 20%. In addition, CSOT is also one of the strong acquisition candidates for Sharp TV LCD factory in Japan.
Currently, BOE and CSOT are still weighing the possibility of acquiring the LG Display LCD factory. In fact, according to observations, the selling price of about 1 trillion Korean won last year has escalated to over 2 trillion Korean won recently.
The industry has always believed that LG Display needs to accelerate the sale of its Guangzhou LCD factory in order to invest in the 8.6th generation IT OLED equipment in advance. However, there are reports that LG Display is more focused on minimizing risk internally rather than rushing to invest, which will also drive negotiations for the sale of LCD factories.
A monitor industry insider said, "LG Display is also conducting in-depth research on the timing of the OLED market's launch and the possibility of oversupply after investment. The key now is to determine how to handle risks, rather than making bold investments."
The acquisition of Guangzhou LCD factory not only involves various customers who obtain panel supply from LG Display, but also involves matters related to Chinese enterprises. Analysts generally believe that after the acquisition, LG Electronics, a subsidiary of LG, will continue to receive LCD panel supply, and Samsung Electronics, which has recently become a core customer of LG Display OLED, will be factors to consider in the negotiations.
LG Display mentioned the sales progress of the Guangzhou LCD production line during a conference call on April 25th, although no specific information was disclosed, it gave a positive signal.
LG Display CFO Kim Seung hyun said, "The results may be better than expected, we need to observe the timing."
Note: The information in this article is only for the purpose of providing channels for sharing and communication, and does not represent the platform's views and positions
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