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After deciding to cut back on LCD panel production, it closed the factory in Suzhou City, China, to focus on research and development. Recently, the Korean giant continues to make the decision to sell this factory.
Korean press sources showed that Samsung was looking for buyers for the LCD factory in Suzhou. Located in Jiangsu province in east China, the factory used to play an important role in LCD display business in Samsung Display branch.
Previously, Samsung confirmed that it was shutting down production at its LCD factory in Suzhou late last year as part of its strategy to move to OLED products.
If the deal to sell the Suzhou factory is successful, Samsung could generate $ 1.08 billion, the source said. The potential buyer is said to be China Star Optoelectronics Technology (CSOT), the display subsidiary of a Chinese consumer electronics company. CSOT will guarantee the purchase of a 60% stake in this factory, while the parent company buys 10%, the rest is managed by the city of Suzhou.
Overall this is a milestone showing that Samsung is gradually divesting all capital in the LCD business. When the Covid-19 epidemic struck, the factory laid off 1,700 people. Previously, the factory in the country of one billion people accounted for 27% of Samsung’s LCD screen output.
With the economic slowdown caused by the Covid-19 epidemic and the postponement of the Tokyo 2020 Olympics, TV sales are expected to plummet, so Samsung may have a hard time waiting for a better spring. LCD. Even before closing completely, the factory in Suzhou was only operating in moderation.
Samsung Display has a 12.33% stake in TCL, valued at $ 739 million. This can be used as part of the deal.
This factory was established by Samsung in Suzhou in 2000, the year China joined the WTO with the value of products exported abroad in 2012 for a total of 4.3 billion dollars.
However, after dropping out of China’s top 20 exporters in 2012, this factory has continuously decreased production and was ranked 155 when the list was announced last year with the value of the exported product. in 2018 it dropped to $ 1 billion.
Samsung closed its last smartphone factory in China last year and moved to Vietnam, a move that hit the local economy hard.
