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>> Huaxing Power 11-generation LCD production line in 2019 put into production, why 10% capacity linked to the name of Samsung? Jan 3rd,2017
The next generation Huaxing Power 11-generation LCD production line will have 10% of capacity for the production of Samsung Display (SamsungDisplay) panel, and the brand will be directly linked to Samsung monitors, a OEM production form. The industry believes that this will be Samsung and the mainland TCL Group mutual investment, cross-procurement cooperation under another progress.
Industry sources pointed out that Huaxing Power has started to build 11-generation LCD production line, to be completed and put into operation in 2019, there will be 10% of production capacity for the production of Samsung display panel, and is a foundry production.
September 2016 Samsung monitor and TCL reached an agreement, decided to its subsidiary Huaxing photoelectric investment of 2.1 billion yuan, to participate in Shenzhen, Shenzhen 11 line (G11 project) to build the stake of about 9.8%; G11 project to change the Sino-foreign joint ventures Enterprises, as Huaxing Electric holding subsidiary, the ceremony was held at the end of November.
G11 project is scheduled to increase by the end of 2017 by 21.5 billion yuan by the Huaxing photoelectric and Shenzhen City, a major industrial development Fund Co., Ltd. (Shenzhen Municipal Government) each holding 53% and 37%, the rest are owned by Samsung monitors. It is understood that the Samsung Display has been through the Yangtze River Wuzhi equity investment fund invested RMB 500 million yuan.
TCL Group, the G11 project inauguration ceremony, said the amount of investment of 538 million yuan, more than the original plan of 7.3 billion yuan; production capacity from 90,000 per month to 14 million per month, the main production of 43-inch, 65-inch, 75-inch and other large-size 8K TV LCD panel.
Samsung stakeholders said the size of the TV gradually increased, but the company has no investment in the construction of 10-generation line plan, by the investment Huaxing G11 project, the same can also obtain large-size LCD panel production capacity.
On the other hand, TCL owns a 10% stake (100 million US dollars) in the LCD 8-generation line of Samsung Display in Suzhou, and is a mutual investment and cross-purchase partnership with Samsung Group.
Samsung LCD panel production line, some supply TCL multimedia technology; Samsung Electronics (SamsungElectronics) also purchased from Huaxing Photoelectric LCD panel.
According to IHS, TCL is the third largest LCD TV market by 5.5% in 2015, behind Samsung Electronics and LG Electronics.
Recently, as Samsung monitors have discontinued South Korea's LCD production line, Samsung Electronics to reduce their own LCD panel procurement, in turn increase the number of external suppliers, such as AUO, BOE, which is Sharp said it will no longer Samsung Electronics Supply of TV LCD panel, the cause of the industry particularly concerned about the reasons.
Market information agency pointed out that in 2015 Samsung LCD large-size LCD panel market share of 21%, but in 2016 reduced to 16 ~ 17%; the past two years, Samsung Electronics LCD TV market share roughly the same level, the same In about 21%. Meaning that will begin to appear in 2016, Samsung LCD TV market share and Samsung large-size LCD display panel display market inconsistencies in the situation.
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