TCL chairman Li Dongsheng had asked South Korean display equipment makers for an understanding of the current delays in payments during his visit last month, TheElec has learned.
Due to low demand for TVs, display panel makers like CSOT, a subsidiary of TCL, are currently operating their factories at a low rate than usual.
Li visited South Korea last month to meet with South Korean display equipment makers to gauge the current trends of Gen 8 OLED panels.
He had also asked for understanding from its South Korean partners for delayed payments and its spending plan being pushed back due to the overall downturn in the display panel market, sources said.
Due to the low operation rate of its Gen 6 OLED line, the TCL chairman had also asked the equipment makers whether this line could be converted to make other panels, the sources added.
Li also told the equipment makers that some parts of the T5 project, CSOT’s Gen 6 liquid crystal display (LCD) line, will be pushed back to next year.
Some parts of T9, CSOT’s Gen 8.5 LCD project, will also be pushed back six months, the chairman shared, hence the apology for the delayed payments.
TCL needs long-term trust from South Korean equipment makers as the pandemic has caused downtime in equipment production to be prolonged, meaning every equipment maker is important for the timely construction of factories.
While CSOT has Samsung Display as its investor and is generally well regarded, the controversy over compatriot Infintech had increased concern among South Korean display equipment makers over delayed payments.
Jiangxi Infintech Optoelectronics had ordered equipment from multiple South Korean display equipment makers for a Gen 6 LCD factory back in 2018.
But the company delayed payment and delivery multiple times until the company itself later disappeared.
Infintech had ordered equipment worth a combined 100 billion won from South Korean companies such as Top Engineering, YEST and DMS.