Samsung Electronics Buys TCL CSOT Stake
Samsung Electronics will acquire the stake held by Samsung Display in the Chinese display manufacturer TCL China Star Optoelectronics Technology (TCL CSOT) for approximately 1.3 trillion won (approximately $1.0 billion).With Samsung Display withdrawing from the liquid crystal display (LCD) business
Samsung Electronics plans to purchase Samsung Display's 10.16% stake in Chinese display manufacturer TCL China Star Optoelectronics Technology (TCL CSOT) for roughly 1.3 trillion won, or about $1 billion. This acquisition comes as Samsung Display exits the liquid crystal display (LCD) business and shifts focus towards organic light-emitting diodes (OLED).
The move is reportedly aimed at ensuring a stable supply chain for LCD panels used in TV production. Samsung Display sold the stake to TCL CSOT in 2021 when it liquidated its LCD production facility in Suzhou, China. With Samsung Display's withdrawal from LCD manufacturing, the significance of retaining the stake in TCL CSOT appears to have diminished.
Meanwhile, Samsung Electronics continues to incorporate LCD panels in its TV products. The company's decision to acquire the stake is seen as a strategic step to enhance collaboration with a leading LCD panel supplier and ensure a dependable source for panel procurement. The acquisition's primary objective, as disclosed, is to "strengthen the strategic collaborative relationship."
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