The Xiamen TV plant of L&T Display Technology, a joint venture between TPV Technology and LG Display, has decided to discontinue its operations with industry sources indicating that TPV may take over the TV plant once the workers of the plant are being laid off. TPV officials in Taiwan denied the speculation.

L&T Display announced its decision on December 16 and had its employees take paid leave from December 17 to January 15. Although the company has stated that it will offer preferential severance payment to its employees, the sudden announcement has drawn a strong protest from its workers.

L&T Display was set up in 2009, with LG Display holding a 51% stake and TPV taking up the remaining 49%. L&T Display also operates a monitor plant in Fujian.

TPV shipped 3.3 million LCD TVs in the third quarter of 2011, which generated revenues of US$954 million, accounting for 33.4% of the company's total revenues for the quarter. However, TPV said its TV business unit posted losses in the third quarter due to increased costs for business expansion.