According to recent reports, TCL Technology acquired Suzhou CSOT to increase the company’s competitive edge in the semiconductor industry, optimizing product quality and expediting the streamlined process.
TCL Technology announced on the night of October 10, 2021, that its subsidiary, TCL China Star Optoelectronics Technology Co., Ltd., recently acquired a 30% share of Samsung Suzhou LCD Co., Ltd. with CNY 2.45 billion. TCL also signed an equity interest transfer agreement with Suzhou Industrial Park State-owned Assets Holding Development Co., Ltd., making Samsung Suzhou a subsidiary of TCL CSOT.
The acquisition reinforces the company's leading position in the semiconductor display industry by optimizing the product streamline process and quality, increasing digitalization, improving supply chain management, increasing profitability and raising shareholders’ returns.
In addition, the acquisition will fully utilize Samsung Suzhou's customer base and technical capabilities to increase further TCL CSOT's competitive edge in the curve screen display market.
TCL CSOT announced in April 2020 that it acquired 60% of Samsung Suzhou's share, which the latter was renamed to Suzhou CSOT and appeared on TCL's financial statement in Q2 2021. Suzhou CSOT owns an 8.5-generation TFT-LCD production line (t10), producing approximately 120 thousand panels each month.
Suzhou CSOT was established on May 10, 2011, focusing on producing and researching liquid crystal display panels and modules and related products.
As of the first half of 2021, Suzhou CSOT reported a total unaudited total asset of CNY 8.73 billion and a total net asset of CNY 7.02 billion. The company also reported a revenue of CNY 4.20 billion and a net profit of CNY 517 million in the first of 2021. In 2020, Suzhou CSOT recorded total revenue of CNY 8.35 billion and a net profit of CNY 96 million.
TCL Technology was founded in 1982 and was listed on the main board of the Shenzhen Stock Exchange in the January of 2004. In April 2019, the company completed the reorganization and divestiture of smart terminals and related supporting business. Today, the core business of TCL Technology consists of semiconductor display, semiconductor photovoltaic and materials, and industrial finance and investment panels.
TCL CSOT mainly engages and manages TCL Technology's semiconductor display sector. According to the report, TCL CSOT recorded revenue of CNY 4.07 billion in the first half of 2021, a year-over-year growth of 108.88%.
As of closing on October 8, 2021, TCL Technology's stock had increased by 3.51% to CNY 6.48 per share and a total market value of 90.92 billion.