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BOE plans to build Gen 6 LTPS/AMOLED production line
Publish time:2015-01-06

    On October 23, BOE Technology Group Co., Ltd. announced that it had signed an agreement with the Chengdu Municipal Government on building its Gen 6 LTPS/AMO-LED production line in Chengdu Hi-Tech Industrial Development Zone.
    According to the announcement, the new production line is intended to produce high-end mobile phone panels and new displays for mobile devices. It has a design
capacity of 45,000 glass substrates per month and involves a total investment of RMB 22 billion. The project will commence in the second quarter of 2015 and is expected
to come into operation in the first half of 2017.
    According to BOE Vice President Zhang Yu, the RMB 22 billion will be partially raised by the company and partially from a syndicated loan; no capital market financing
will be sought.
    Industry insiders comment that the new production line in Chengdu, once completed, will further increase BOE’s competitiveness in high-end displays of small and
medium sizes. It means that the company will gain greater overall strengths in high-performance mobile phone panels and displays for mobile devices, a higher proportion of products with higher gross margins, and better capacity to withstand market fluctuations.
    According to NPD DisplaySearch, the demand for LTPS panels will continue to grow with the popularity of high-resolution smart phones and increasing sizes of smart
phone screens. In 2013, the demand for LTPS panels was 3.288 million m2 and that for AMOLED panels was 1.376 million m2. It is expected that the compound annual
growth rate (CAGR) of demand for LTPS panels will reach 24.1% and that for AMOLED panels 40.7% in 2020.
    The National Development and Reform Commission (NDRC) and Ministry of Industry and Information Technology (MIIT) of China have recently published the Action
Plan for Innovation and Development of the New Display Industry 2014-2016. According to the action plan, China will give priority to the development of LTPS and AMOLE-D panels in the next three years. The aim is to make China the world’s second largest new display producer by shipments calculated in panel area, China’s share in the
global market more than 20%, and the size of China’s new display industry more than RMB 300 billion.