(Yicai Global) Aug. 22 -- Electronic display giant BOE Technology Group Co. [SHE:000725] will build its first large-scale organic light-emitting diode (OLED) micro-display production line in the capital of China's southwestern Yunnan province, Kunming, with a total investment of CNY1.15 billion (USD172 million), it said in a press briefing on Aug. 21.
The firm confirmed the framework for the project in late March, but specific details were not finalized before the statement.
Initial registered capital for the production base, which will have an annual production capacity of one million units per year, will be CNY1 billion. BOE Technology will contribute CNY670 million to hold a 67 percent stake.
Chinese OLED tech firm Olightek Opto-Electronic Technology Co. will invest CNY200 million through OLED micro-display related intangible assets and Dianzhong Industry Development Group Co. will put up CNY95 million. Kopin Technology Shenzhen Co., the Chinese subsidiary of major American electronics manufacturer, Kopin Corp. [NASDAQ:KOPN], will provide the remaining CNY35 million.
Olightek, owned by China North Industries Group Corp., is the only Chinese company that owns core OLED micro-display technology and is capable of producing multiple-model OLED micro-display devices. The firm already has an advanced micro-display production line with an annual capacity of 450,000 units.
OLED micro-displays use wafers as a backboard, and possess a number of unique properties that make it an ideal display medium for augmented reality and virtual reality devices, presenting vast market growth potential.
Dianzhong Industry Development is wholly-owned by Dianzhong New Area Administration Committee in Yunnan province. Yesterday's statement confirmed the government-backed firm as a new partner in the investment.