BOE to Build Another AMOLED Display Plant Amid Rising Demand From Device Makers
Tang Shihua
DATE:  Dec 27 2018
/ SOURCE:  yicai
BOE to Build Another AMOLED Display Plant Amid Rising Demand From Device Makers BOE to Build Another AMOLED Display Plant Amid Rising Demand From Device Makers

(Yicai Global) Dec. 27 -- BOE Technology Group plans to invest CNY46.5 billion (USD6.8 billion) in a factory for sixth-generation touch displays in order to meet demand for high-end smartphones and other mobile devices.

The Beijing-based firm, the world's largest liquid crystal display maker, has penned an agreement with the Fuqing and Fuzhou municipal governments in Fujian province to build a factory that produces flexible displays using active matrix organic light emitting diode, it said in a statement yesterday. The facility will be built in Fuqing, which is a county-level city in Fuzhou.

AMOLED displays are commonly used in consumer electronics, like smartphones, laptops, televisions and even smart watches. Apple switched out liquid crystal displays for AMOLED screens for the first time when it made the iPhone X, and the global market for the technology is set to reach nearly USD20.7 billion by 2022, according to Research and Markets.

BOE opened a similar production line in Chengdu, Sichuan province in October last year, sparking an end to Samsung Electronics' monopoly on the market. It is also building another plant in Mianyang, also in Sichuan, which it hopes will start mass-producing displays next year, and another facility in Chongqing.

The newest plant will make glass substrates that are 1,500 millimeters by 1,850 millimeters and hopes to produce 48,000 units a month, the statement said.

The three parties will set up a joint venture to handle the investment, construction and operations of the factory. BOE will chip in CNY11.3 billion (USD1.6 billion) for a 43.5 percent stake with the two governments holding the rest. The state shareholders will also help the unit obtain CNY20.5 billion in bank loans.

The local governments will also offer policy support covering land, energy supplies and human resources, and pledged not to bring in any other AMOLED or thin-film-transistor LCD display makers into Fuzhou within the three years of the date the JV opens its doors, according to the statement.

Editor: James Boynton

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Keywords:   AMOLED Displays,BOE Technology