Samsung Display's 'China LCD Factory' Sale Approved by Government

[Asia Economy Reporter Kang Nahum] Samsung Display announced on the 5th that it has received approval from the Ministry of Trade, Industry and Energy to sell its liquid crystal display (LCD) production line in Suzhou, China.

According to the Ministry, the Industrial Technology Protection Committee held a meeting the day before and reviewed and approved Samsung Display's application for the 'sale of the Suzhou LCD factory in China.'

Earlier, Samsung Display signed a contract in August last year to sell its entire stake in the Suzhou LCD production line to CSOT, a subsidiary of China's TCL, for about 1.2 trillion won. However, since the '8.5-generation LCD technology' applied to this line is designated as a national core technology, the company has been undergoing government approval procedures for the sale.

Samsung Display is planning to exit the existing LCD business, which has declining profitability, and transition to the next-generation display, QD Display. With this government approval, the transition to QD is expected to accelerate.

A company official stated, "Even after government approval, we will not immediately withdraw from the factory and will continue operating the factory for the time being until the remaining administrative procedures are completed."