Samsung is the winner in the LCD panel industry with its stake in TCL Huaxing
Samsung is sitting at the top of the global TV industry, at least for the next ten years, Samsung TV status untouched. Even if LG desperately trying to catch up, there is still a gap of one position with Samsung.
Aowei Cloud recently released the "global TV brand shipment monthly data report" shows that the first half of 2021 global TV shipments of 98.3 million units, an increase of 6.8%. Among them, Samsung shipped 20.8 million units year-on-year growth of 11.9% ranked firstLG, TCL, Hisense, Xiaomi divided 2 to 5.
This is only the outside world to see the surface. Most people can't see Samsung, has built a hidden business map, which is the main way to maintain the integrity of Samsung's color TV industry ecosystem, reduce risk and maintain multiple tracks to increase profits.
Samsung's approach is to invest in its competitors. It is a competitor and a partner, Samsung's move is an offensive one and a defensive one.
Investment in TCL LCD panels from the source of "interception"
Samsung early years through investment in TCL, to build LCD panel production line, to maintain a strong TV production, panel supply capacity.
As early as August 2016, TCL Group announced plans to invest 46.5 billion yuan in Shenzhen Guangming New Area to invest in the construction of the 11th generation of TFT-LCD and AMOLED new display device production line project.
At that time, as TCL invested an additional RMB 21 billion, Samsung took the opportunity to inject capital and thus became one of the partners, and its relationship with TCL became more delicate. The two cooperated in the supply of LCD panels and competed with each other in the production of finished TVs.
The LCD panel factory is a joint venture between TCL Group, Huaxing Optoelectronics (a subsidiary of TCL Group) and the Shenzhen Economic and Trade Information Commission. The factory mainly produces 43, 65, 70 and 75-inch LCD screens.
According to the blue technology observation, although the domestic environment of new display technology, LCD investment has weakened, but it still has an irreplaceable position, and the short-term demand is still unabated.
Samsung invested in the 11th generation line, it is clear that in order to obtain super-large LCD-related products stable production capacity. As the display technology is updated, the world's highest generation LCD panel line also provides a strong guarantee for Samsung's TV production and panel supply. It is not difficult to understand why Samsung TV shipments in the world is so strong.
Samsung Suzhou factory transfer TCL still "leave a hand"
At the end of 2019, as Samsung and LG and other Korean companies have announced their withdrawal from LCD industry-related business, the issue of Samsung's Suzhou factory has led to many speculations.
The answer was finally revealed at the end of August last year, when TCL Technologies acquired Samsung's Suzhou 8.5-generation line factory for about 7.622 billion yuan.
This round of acquisitions, it seems to be TCL Huaxing swallowed part of the business of Samsung Display, but at the same time, Samsung's share of TCL Huaxing, from the past 5.02% to 12.33%, an increase of more than 100%.
This is because, samsung display will also be suzhou samsung electronics liquid crystal display technology limited company 60% equity consideration of $ 7.39 billion (about 5.21 billion yuan) to TCL huaxing capital, thus, samsung also become the second largest shareholder of TCL huaxing. The sale of the Suzhou factory, through the form of investment "to keep a hand", is typical of Samsung's strategic thinking.
Industry analysts believe that samsung give up suzhou factory on the one hand is worried about the future uncertainty of the industry to reduce the risk; but on the other hand, and not willing to give up all this production line, because the global display industry are moving to China, large size is the future trend. Therefore, the investment in huaxing photoelectric is a win-win situation. Can meet huaxing photoelectric in the panel line expansion, but also can keep in different sizes of the panel have a say, at the same time to ensure the interests of samsung as investors.
Samsung investment in TCL panel, earn enough face and inside.
Although some industry insiders are not optimistic about the above acquisition, however, from the point of interest analysis of LCD, large size LCD business also for TCL technology layout of new display this track provides a full guarantee. And large size LCD has also become the basic plate in the main business of TCL Technology, and is even the mainstay of its current revenue contribution.
With TCL Huaxing for strategic adjustment, TCL Huaxing in 2019 large size products to achieve shipments of 20.82 million square meters, an increase of 19.1% year-on-year, the TV panel share to the third in the world.
Participate in TCL panel factory is to reduce the risk of reaping the benefits
For Samsung, weaken the LCD business in Samsung's strategic position, it was given to TCL Huaxing, not only in the "thin" after the layout of new display business, but also can rely on the supply of LCD panels and TCL Huaxing to take the market share to reap the benefits.
At this stage, the large size display field, LCD panel demand is very huge. Even some industry insiders foresee that the printing OLED technology has not yet been put into commercial production in large quantities before, LCD panels in the field of large size still play an irreplaceable role.
Blue technology noted that TCL Huaxing also continue to cooperate, self-research, mergers and acquisitions to occupy key strategic control links and technology nodes, and actively develop Mini-LED, Micro-LED, flexible printed display OLED, QLED and other new display technologies, materials and processes, trying to establish a global leading position in the field of next-generation display technology based on the complete ecological layout.
Therefore, no matter how fierce the international and domestic LCD panel competition is, Samsung's investment in TCL will benefit from TCL's vertical focus on LCD panels and ecological construction.
