Samsung Display, an arm of South Korea-based Samsung Electronics which makes display panel for various devices, has sold off its LCD production line located in Suzhou, China to TCL Technology.

The move is in line with the company’s plan to stop the production of LCD panels by the end of this year. The South Korean company is now shifting its focus towards the production of LED panels and the next-generation QD panels.

Samsung Display has announced that the company has signed an agreement to sell its entire stake in Suzhou production line to TCL Huaxing, a subsidiary of TCL Technology, in a deal worth around $1.08 billion.

It handed over around 60 percent stake in a fab in charge of front-end processes and a 100 percent stake in a back-end module production line at the Suzhou plant to TCL Huaxing. Following this deal, Samsung Display has also acquired a 12.33 percent stake in TCL Huaxing for $739 million.

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The plant can handle production of 160,000 sheets per month and is currently processing 120,000 sheets of glass per month. It is currently used for producing 32-inch, 55-inch, and 65-inch panels for mainstream products in the market.

With this acquisition, TCL Technology now has three 8.5th-generation lines and two 11th- generation lines for the LCD panel production. It seems that the company is seeking to expand its market share in the display segment without spending much money on setting up its own production facilities.

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