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LG Display’s Guangzhou Gen 8.5 LCD line was officially transferred to CSOT today (April 1st) and renamed “T11”. CSOT will now own two Gen 6, four Gen 8.5, one Gen 8.6, and two Gen 10.5 LCD production lines with this acquisition. TrendForce notes that the completion of this—along with ramping up capacity at CSOT’s T9 Gen 8.6 line—will increase the company’s share of global large-generation (Gen 5 and above) LCD production area by 3.6 percentage points to 22.9%. As T11 mainly produces TV and public information display (PID) panels, the combined TV market share of the top three panel makers—BOE, CSOT, and HKC—is expected to rise further to 66%.
In the short term, CSOT plans to conduct a detailed evaluation of the T11 site and will initially operate the facility with a capacity of 150K large-size glass sheets per month, adjusting output based on market demand. TrendForce notes that CSOT’s top priorities after the takeover will be optimizing T11’s cost structure, planning new product lines, and securing a stable customer base.
Strategically, CSOT is targeting the expanding market for ultra-large-size TVs. Its T2 plant is already ramping up capacity for panels 80 inches and larger. However, this focus may reduce capacity available for other sizes. CSOT will need additional capacity to maintain its leading position in the 55-inch segment, making the T11 acquisition a strategic move that provides greater operational flexibility.
Beyond TV panels, CSOT may also consider using T11 to support its IT panel production—particularly for monitors. Its T9 facility has not met original output targets due to capacity being reallocated to other products. If CSOT intends to expand its monitor panel business, additional production resources will be necessary. T11 could play a key role.
TrendForce also highlights the impact of China’s “trade-in” subsidy program introduced in August 2023, which emphasizes energy efficiency. This initiative has driven a surge in Mini LED-backlit TV demand, with penetration expected to double in 2024 to 4.1%. TV sizes of 75 inches and above are forecast to see an 8.2% YoY growth in panel shipments. This growth is driven not only by panel makers’ focus on larger sizes but also by TV brands prioritizing larger models for higher profit margins.
LCD remains the dominant technology for TVs 85 inches and above. As panel makers move to explore opportunities in the 116-inch segment and beyond, demand for large panel area continues to grow. In anticipation of a potential supply shortage, TrendForce believes that this increased concentration of TV panel production among a few major players will help balance market supply and demand while providing greater pricing stability in the future.
