TCL Technology's $1.29 Billion Semiconductor Acquisition Approved by Shenzhen Stock Exchange

TCL Technology, a major player in the electronics industry, has advanced its strategic acquisition plan with approval from the Shenzhen Stock Exchange for its purchase of a 45% stake in Guangzhou Huaxing Semiconductor. The deal, valued at 9.33 billion yuan (approximately $1.29 billion), still requires final registration approval from the China Securities Regulatory Commission (CSRC).

Upon completion, the acquisition will consolidate TCL Technology's ownership to 100% of Guangzhou Huaxing Semiconductor. The total consideration for the transaction is split evenly, with approximately 4.66 billion yuan to be paid in cash and the remaining 4.66 billion yuan in shares.

Guangzhou Huaxing Semiconductor, established in December 2020, operates three advanced production lines crucial to TCL's semiconductor and display business. The t8 line is an 8.6-generation printed OLED production facility set to begin mass production in the second half of 2027, focusing on mid-sized high-end OLED displays. The t9 line, an 8.6-generation oxide semiconductor display production facility, is already operating at full capacity and producing high-end IT products and professional displays. The t11 line, formerly LG Display's Guangzhou facility, is an 8.5-generation TFT-LCD line producing large-sized LCD panels for televisions and commercial displays.

Guangzhou Huaxing Semiconductor has shown strong financial performance. In the first half of 2024, the company reported revenue of approximately 7.93 billion yuan, a 7.40% increase year-over-year. Net profit surged by 203.99% to about 1.15 billion yuan during the same period.