The sale of LG Display's LCD factory in Guangzhou is accelerating, with expectations of limited competitive bidding (auction) among three Chinese companies in the first half of the year, followed by selection of a preferred negotiating partner.

According to industry sources, LG Display has decided to sell its Guangzhou LCD factory (GP1 and GP2) through an auction and plans to conduct the bidding at the end of April. Three companies, including BOE, CSOT, and Skyworth, have been shortlisted. These shortlisted companies have recently begun local due diligence with acquisition advisors. An industry insider stated, "The expected price will be around 1 trillion Korean won, but if the competition intensifies among the companies, the selling price may be higher."

The Guangzhou factory is a joint venture between LG Display, Guangzhou Development District, and Skyworth, with a capital of approximately 2.13 trillion Korean won and an investment amount of approximately 4 trillion Korean won. Production began in 2014, with a monthly output capacity of up to 300,000 panels. Currently, the operational level is at 120,000 panels per month, mainly producing 55, 65, and 86-inch LCD TV panels.

In the LCD TV panel market, Chinese companies hold the majority of global market share. Local companies intend to expand their economies of scale by acquiring the Guangzhou factory. Acquiring another company's business is the fastest way to increase capacity without expanding new LCD TV facility investments (CAPEX). For example, after being acquired by BOE, the LCD market share (by area) is expected to increase from 27.2% in 2023 to 29.3% in 2025.