[Edaily Reporter SOYEON KIM ] SamsungElectronics is set to acquire Samsung Display’s stake in Chinese display manufacturer TCL China Star Optoelectronics Technology (TCL CSOT) for approximately 1.3 trillion won. As Samsung Display has withdrawn from the liquid crystal display (LCD) business and restructured its operations to focus on organic light-emitting diodes (OLEDs), this move by SamsungElectronics is seen as an effort to secure a stable supply chain of LCD panels needed for TV production.

On the 30th, SamsungElectronics announced in a regulatory filing that it had decided to acquire the 10.16% stake in TCL CSOT held by Samsung Display for 1.2718 trillion won. SamsungElectronics held a board meeting on the 29th and approved the proposal. With this transaction, Samsung Display will divest its entire stake in TCL CSOT. The transaction will be conducted as an over-the-counter acquisition of the shares by SamsungElectronics from Samsung Display.

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TCL CSOT is a major Chinese display manufacturer that operates numerous LCD production lines. Samsung Display acquired its stake in TCL CSOT in 2021 when it sold its LCD production facility in Suzhou, China, to the company. Since then, as Samsung Display has completely withdrawn from the LCD business and reorganized its operations to focus on OLED, the need to hold a stake in TCL CSOT appears to have diminished.

In contrast, SamsungElectronics continues to use LCD panels in its finished product businesses, such as TVs. Through this stake acquisition, the company is expected to strengthen its strategic partnership with a major LCD panel supplier and secure a stable panel supply base.

In a regulatory filing, SamsungElectronics explained that the purpose of this stake acquisition is to “strengthen strategic collaboration.”