TCL CSOT to Invest $4.1B in Guangzhou's 8.6-Gen Printed OLED Plant

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TCL China Star Optoelectronics Technology, a prominent manufacturer of liquid crystal displays, is investing 29.5 billion Chinese yuan (approximately $4.1 billion USD) to establish an 8.6-generation printed organic light-emitting diode (OLED) display plant in Guangzhou.

The company will form a joint venture with state-owned enterprises managed by the Guangzhou municipal government to handle the investment, construction, and operation of the new facility. The parent company will allocate the required funds, with TCL holding a 60% stake in the joint venture, while the state-owned enterprises will hold the remaining 40%. The new enterprise will have a registered capital of nearly 14.8 billion yuan, with the difference from the total project investment covered through syndicated loans.

Located in the Guangzhou Economic and Technological Development Zone, the plant will have a monthly capacity to process roughly 22,500 glass substrates measuring 2,290 by 2,620 millimeters. Construction is slated to begin in November, with an expected timeline of 24 months.

Printed OLED panels offer several advantages over traditional OLEDs, including superior color accuracy, higher resolution, improved material efficiency, lower energy consumption, and reduced manufacturing costs. All technologies utilized in this project are developed and owned by TCL CSOT.

Establishing this advanced OLED manufacturing facility aims to position TCL CSOT as a leader in the evolving global display industry, especially in high-end display segments, thereby expanding its market share.

TCL holds a substantial 82% ownership stake in TCL CSOT, with Samsung Display owning just over 10%. The company operates 11 display panel production lines and six display module manufacturing bases located across five Chinese cities, India, and Vietnam. Notably, its 5.5-generation printed OLED production line in Wuhan is already in operation.

As of midday trading in Shenzhen today, TCL’s shares were down 0.5%, trading at 4.39 yuan (about 62 US cents).