BOE plans to build a production line of the world’s highest generation

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BOE plans to build a production line of the world’s highest generation
Publish time:2015-04-21


On April 20, BOE Technology Group Co., Ltd. (BOE) (BOE A Share: 000725; BOE B Share: 200725) announced that it had planned to build a Gen 10.5 TFT-LCD production line in Hefei, Anhui Province.

According to the announcement, the new production line is intended to produce displays larger than 60 inches as well as high-end smart TV displays with ultra-high resolution and digital information displays. It has a design capacity of 90,000 3370×2940mm glass substrates per month and involves a total investment of RMB 40 billion. The project will commence in the first quarter of 2016 and is expected to come into operation before the end of 2018.

According to leading consulting firm IHS DisplaySearch, the demand for displays larger than 60 inches will reach 20 million square meters in 2021. Gen 10 production line has the highest cutting efficiency for such large-sized displays. Once completed, BOE’s Gen 10.5 line in Hefei will boost the production of such products considerably.

On the same day, BOE announced the signing of a framework agreement with Fuzhou Municipal Government and Fuzhou Urban Development and Investment Group Co., Ltd. on investing in BOE’s Gen 8.5 new-type semiconductor display production line in Fuzhou. The project is intended to produce high-end smart TV and digital information displays featuring large size and ultra-high resolution. It has a design capacity of 120,000 2500mm×2200mm glass substrates per month and involves a total investment of RMB 30 billion.
A
ccording to BOE Vice President Zhang Yu, the funding for both projects will be partially raised by the company and partially from a bank loan; capital market financing will be sought for neither of the project.

Zhang Yu believes that large-sized UHD products will be in greater demand as the New Internet Age progresses, consumers change their mindset, and the TFT technology advances. In 2015, the average size of televisions in China is expected to reach 42.7 inches. Consumers will prefer products with larger displays that shows better images. The demand for B2B displays will also grow step by step. The application of new technologies will bring new opportunities for panel makers so the market prospects are bright.

According to HIS DisplaySearch, the global FPD market will experience steady growth in the next five years. The demand for large- and medium-sized UHD panels is expected to reach 30.4 million square meters in 2015 and 77.7 million square meters in 2019, a compound annual growth rate (CAGR) of 26.4%. Specifically, the demand for UHD panels larger than 60 inches will register 10.4 million square meters in 2015 and 18.9 million square meters in 2019, a CAGR of 33.1%. Therefore, market demand will rise sharply.