The transaction encompasses LG Display's 80% ownership in the large LCD panel manufacturing plant as well as full ownership of its LCD module facility. The completion of this sale is anticipated by March 2025, according to a statement from the company, which supplies components to Apple.
This strategic decision is aimed at allowing LG Display to concentrate more effectively on its organic light-emitting diode (OLED) business, where it holds a competitive advantage compared to the oversaturated LCD market.
"We intend to prioritize our OLED operations to enhance our competitive edge and establish stable profit margins. Additionally, we foresee that the capital generated from this sale will bolster our financial stability," LG Display stated.
Following this sale, LG Display will cease production of LCD panels in China, while continuing to manufacture higher-margin large-sized OLED panels in the region. Analysts have indicated that this divestiture will improve LG Display's financial framework, particularly after the company experienced multiple quarterly losses last year due to diminished demand for devices utilizing display panels.