What They Say
Omdia released free of charge a detailed look (26 Powerpoint slides) at the takeover of Samsung’s Suzhou fab by CSOT/TCL. The document looks at what is happening, how TCL might develop the fab and the implications for consolidation in the industry. It also looks at how it will change the TCL group and TCL ChinaStar structures.
What We Think
This deal was well forecast and not a surprise to industry watchers. It moves TCL/CSOT up to very close to BOE in capacity and, of course, the company has the vertical integration that can be helpful to get the panel side of the business through the industry’s inevitable negative cycles. Samsung and LG have always been able to rely on this, while merchant suppliers such as AUO can be left in the doldrums.
It is good of Omdia to release this detailed analysis and if you are involved in the supply chain, it is certainly worth a download and some study. (BR)
Omdia explained how the industry is consolidating. Click for higher resolution
