TCL Huaxing's plan to transform the 8.5-generation LCD production line in Suzhou may be postponed

According to THE ELEC report, TCL Huaxing's transformation plan for the Suzhou panel factory may be postponed.

In August 2020, TCL announced the acquisition of Samsung Display’s 8.5-generation LCD factory in Suzhou for US$1.08 billion. TCL Huaxing initially planned to start production in its new LCD factory T9 in the second year after transforming its Suzhou factory TV production line into an IT panel production line.

According to people familiar with the matter, due to the shortage of LCD TV panels, TCL Huaxing’s customers asked it to extend the production of TV panels at the Suzhou plant.

Last year, Samsung Display and LG Display successively reduced production, leading to a shortage of LCD TV panel market supply. At the same time, Chinese panel companies have postponed the start of production of the 10.5 generation LCD production line. According to the requirements of Samsung Electronics and LG Electronics, both SDC and LGD have extended the production of LCD panels.

However, the current revenue of IT panels is much higher than that of TV panels. And in the first half of 2021, the price of IT panels is expected to continue to rise, while the price of TV panels is expected to remain stable.

In addition to the difficulty of restructuring the production line, TCL Huaxing’s acquisition plan itself is also facing delays. It is reported that the South Korean government has not yet approved the acquisition. The LCD panel is recognized as one of Korea's core technologies.