9.325 billion, TCL Technology plans to acquire 45% equity of Guangzhou Huaxing Semiconductor

On the evening of March 30, TCL Technology announced that it plans to spend 9.325 billion yuan to acquire 45% of the equity of Guangzhou Huaxing Optoelectronic Semiconductor Display Technology Co., Ltd. (hereinafter referred to as "Guangzhou Huaxing Semiconductor") to achieve full control of the subsidiary.

The company plans to issue shares and pay cash to purchase 45.00% of the equity of Guangzhou Huaxing Optoelectronics Semiconductor held by Hengjian Investment, Chengfa Investment, and Science City Investment. At the same time, it will issue shares to no more than 35 (inclusive) qualified specific objects to raise supporting funds. The total transaction price was 9.325 billion yuan, of which 4.662 billion yuan was paid in shares and 4.662 billion yuan was paid in cash.

It is understood that Guangzhou CSOT Semiconductor is the main operator of TCL CSOT t9 factory. It has the first G8.6 generation oxide semiconductor display panel production line in China that specializes in high-end IT and professional displays. It is one of the few 8.6 generation a-Si/oxide semiconductor display panel production lines in the world that has achieved mass production. The production line is equipped with independently developed high-mobility oxide technology and HFS fringe field switching technology. It has industry-leading advantages in high refresh rate, low power consumption, and high resolution. It has established long-term and stable cooperative relationships with world-renowned brands such as Lenovo, Dell, Samsung, and Asus, and has reached full production.

According to the announcement, from 2024 to 2025, Guangzhou Huaxing Semiconductor’s operating income increased from 8.248 billion yuan to 16.040 billion yuan, a year-on-year increase of 94%; net profit increased from 274 million yuan to 1.158 billion yuan, a year-on-year increase of 322%.

At the same time, combining a-Si LCD panels occupy the main market share, and it is expected that the market demand for HFS and oxide technology products will continue to grow in the future. TCL Technology also disclosed Guangzhou Huaxing Semiconductor’s main business revenue forecast from 2026 to 2031: 202 16.316 billion yuan in 6 years, 17.238 billion yuan in 2027, 17.608 billion yuan in 2028, 18.201 billion yuan in 2029, 18.703 billion yuan in 2030, and 18.719 billion yuan in 2031.

TCL Technology stated that before this transaction, the company focused on the development of its core main businesses of semiconductor display, new energy photovoltaics and semiconductor materials. This transaction is the company's acquisition of a minority stake in its subsidiary Guangzhou Huaxing Semiconductor, which will help the company further strengthen its main business and further enhance the company's core competitiveness in the semiconductor display industry.

On the one hand, after the completion of the equity acquisition, TCL Technology directly and indirectly controls a total of 100.00% of the equity ratio of Guangzhou Huaxing Semiconductor. The company's shareholding ratio has increased significantly, which will help strengthen the support for Guangzhou Huaxing Semiconductor's operations and improve business execution efficiency; on the other hand, this transaction will help TCL Technology further highlight the core competitiveness of its main business field and further consolidate its industry leading position. (Compiled by TrendForce Display)

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