TCL invests 9.6 billion yuan to build Huaxing Optoelectronics High Generation Module Subproject

On November 17, 2017, TCL Group announced that the company plans to invest in the construction of the TCL Group module integrated intelligent manufacturing industry base in Huaizhou - Huaxing Optoelectronics High Generation Module subproject, with a total investment of about 9.6 billion yuan. The company said that this move is mainly to further expand the TCL Group's vertical integration of semiconductor display advantages, optimize the supply chain and manufacturing capabilities, strengthen the regional industrial layout, promote the development of coordinated upstream and downstream industries, and enhance the overall competitiveness of TCL Group. The announcement shows that the total investment of the project is about 9.6 billion yuan, of which 7.58 billion yuan is invested by Huizhou Huaxing, and 1.855 billion yuan is paid by TCL Industrial Park. Both are subsidiaries of TCL Holdings. The project is expected to complete the first phase of construction in 2019, reaching an annual production capacity of 40 million LCD panels of various sizes; the second phase of construction will be completed in 2021, and an annual production capacity of 60 million LCD panels of various sizes will be achieved. As a top quality asset of TCL, Huaxing Optoelectronics has attracted more and more attention from the market. TCL said in its mid-term report that it will continue to focus on leading industries and adjust its business structure. It plans to use the group as a financing platform for China Star Optoelectronics and retains a small number of asset-light businesses with strong profitability. It can be seen that the future semiconductor display business will become TCL's main source of revenue and profit, and the company will strengthen its strategic coherence in the semiconductor display industry's layout. At the same time, after TCL’s ongoing private placement and acquisition of the remaining equity of China Star, it will actually hold 100% of Huaxing Optoelectronics, and will undoubtedly gradually get rid of the market positioning of its original comprehensive household appliance group. After the completion of the China Star Optoelectronics High Generation Module Subproject, it will become the highest-generation liquid crystal panel G11 and G8.5 line supporting factories, will also provide high-quality liquid crystal display modules for the entire internal and external machine manufacturers, further enhance the Huizhou Huaxing The strength of the new semiconductor display industry. It is worth noting that the TCL multimedia intelligent display terminal project is also in the planning and construction, will form an industry supporting with the project, to achieve the integration of China Star optoelectronics module and multimedia machine production. In the future, it is expected to further enhance the competitiveness of TCL Group's TV upstream and downstream industries, stabilize and enhance its market position, and enhance the overall strength of TCL in the semiconductor display industry.