Samsung Display, CSOT to jointly invest in next-gen LCD

[THE INVESTOR] Samsung Display said on Sept. 13 that it will join hands with Chinese display maker China Star Optoelectronics Technology to roll out next-generation liquid-crystal displays.

“Samsung Display has agreed with the Chinese partner to convert its 8.18-percent stake in the 8th-generation display production line of CSOT to that for the 11th-generation display production line,” said Cho Yong-woo, a spokesperson of the display business affiliate of Samsung Electronics.

Samsung Display will keep 9.8 percent stake in the new LCD production line, worth 2.1 billion yuan (US$314.5 million).

CSOT and the Shenzhen City government will hold 53 percent and 37.2 percent, respectively.

The company is expected to receive 11 percent of the production volume at the 11th-generation LCD production line.

Four 60-inch TV displays can be produced out of an 8th-gen LCD panel while 10 60-inch TV displays can be made out of one 11th-gen LCD sheet

The Korean firm’s joint investment with CSOT came after Samsung Display CEO Kwon Oh-hyun had a meeting with CSOT CEO Li Dongsheng and other executives of TCL, the parent company of CSOT, in Seoul in July.

The Korean display maker has been trying to move its focus from conventional LCD to more advanced displays including organic light-emitting displays and quantum dot displays, which are said to boast better picture quality than LCD.

“Samsung Display and Samsung Electronics will be able to cement their lead in the premium TV market through collaboration with Chinese firms for large-size thin-film transistor LCDs,” said Lee Jeong, an analyst from Eugene Investment & Securities.

“Samsung Display can put more weight on making large scale investments for future displays such as flexible OLED,” the analyst added.

By Kim Young-won (wone0102@heraldcorp.com)