LGD to sell Chinese factory, invests in small and medium-sized OLEDs, accumulating losses by concentrating on large-sized OLEDs (Korea)

According to a Taiwanese market research firm Trend Force, LG Display (LGD) has selected China's TCL Huaxing Optoelectronics Technology (CSOT) as the preferred negotiating party for the sale of its stake in its Guangzhou factory in China.
Trend Force said, "LGD's investment in organic light-emitting diode (OLED) had put a strain on its finances. The sale of the Guangzhou plant will allow the company to focus on investing in responding to customer needs."
"We will provide funds," he said. Industry sources predict that the sale price of the Guangzhou plant will be between 1 trillion won (about 107.9 billion yen) and 2 trillion won (about 215.8 billion yen).
The two companies hope to complete the sale process in the second half of 2024. This will provide a window of opportunity for LGD, which has been under emergency management due to mounting losses.
Regarding how LGD will use the funds it has gained from the sale of the factory, the industry speculates that it will expand its 8.6 generation OLED production line for IT use, targeting demand from Apple.
BOE, a major player in LCD panels, is investing trillions of won in expanding its 8.6 generation line. LGD has focused on large OLEDs, so it is expected to be able to expand its 8.6 generation line.
LGD has fallen behind in the mid- to large-sized OLED market, including in displays and monitors. LGD CFO Kim Seon Hyeong said only that the company is "still considering" how to use the funds.