Samsung takes over display unit’s China stake to bolster LCD ties

Samsung Electronics will acquire Samsung Display’s entire stake in Chinese panel maker TCL CSOT, bolstering LCD supply ties for its TV business as the display subsidiary focuses on high-end OLED panels.

Samsung Electronics said in a regulatory filing on Friday that it would buy the 10.16 percent stake for about 1.27 trillion won ($950 million). It cited “strengthening strategic cooperation” as the purpose of the acquisition.

Samsung Display acquired the shares as part of the sale of its Suzhou LCD plant to CSOT in 2020 as it wound down its Chinese LCD operations. The sale to Samsung Electronics represents a 50 percent return on the original investment.

The deal brings the Chinese shareholding directly under Samsung Electronics, shifting the investment within the group to the company that needs a steady supply of LCD panels for its consumer electronic appliances.

The acquisition could give Samsung Electronics greater leverage in panel supply negotiations with CSOT, as it continues to use LCDs across its TV, home appliance and mobile businesses. Its QLED TVs, which incorporate quantum-dot technology, and some entry-level Galaxy A smartphones use LCD panels.

For Samsung Display, which has exited LCD production, the sale marks the disposal of an investment that has become less relevant as it concentrates on OLED.

TCL CSOT is a major Chinese display manufacturer operating multiple LCD production lines.