(Yicai) Sept. 15 -- TCL China Star Optoelectronics Technology, a leading maker of liquid crystal displays, will spend CNY29.5 billion (USD4.1 billion) to build an 8.6-generation printed organic light-emitting diode display plant in Guangzhou.

TCL CSOT will set up a joint venture with state-owned enterprises under the Guangzhou municipal government to oversee the investment, construction, and operation of the new factory, the Shenzhen-based firm’s parent company TCL Technology announced on Sept. 12.

TCL CSOT will own 60 percent of the JV, and the SOEs the remaining 40 percent, according to TCL. The new company will have a registered capital of nearly CNY14.8 billion. The difference between the JV’s registered capital and the project’s investment will be covered by syndicated loans.

The factory, located in the Guangzhou Economic and Technological Development Zone, will have a monthly processing capacity of about 22,500 glass substrates with a specification of 2,290 x 2,620 millimeters, TCL noted. Construction is expected to start in November and last 24 months.

Compared with ordinary OLED, printed OLED panels have advantages such as excellent color performance, high resolution, high material utilization rate, low energy consumption, and low investment and manufacturing costs. All technologies adopted in the project are owned by TCL CSOT, the parent firm pointed out.

Building an 8.6-gen printed OLED display plant will help TCL CSOT seize a leading position in the new competitive landscape of the global new-type display industry and increase its market share of high-end products, TCL explained.

TCL is TCL CSOT’s largest shareholder and controller with a nearly 82 percent stake. Samsung Display owns just over 10 percent of the company.

TCL CSOT has 11 display panel production lines and six display module production bases in five Chinese cities, India, and Vietnam. Among them, the 5.5-gen printed OLED display production line in Wuhan has already begun production.

TCL’s shares [SHE: 000100] were trading down 0.5 percent at CNY4.39 (62 US cents) as of lunch break in Shenzhen today.

Editor: Futura Costaglione