BOE (BOE) plans to build the first 8.6 generation AMOLED production line in China to open a new era of OLED industry
On November 28, BOE Technology Group Co., Ltd. announced that it intends to invest in the construction of BOE (BOE) 8.6gen AMOLED production line project in High-tech West District of Chengdu, Sichuan Province with the investment platform designated by Chengdu High-tech Zone, which is also the first 8.6gen AMOLED production line in China.
The construction period of the project is about 34 months, with a total investment of 63 billion yuan, and a design capacity of 32,000 pieces of glass substrate per month (size 2290mm×2620mm), mainly producing high-end touch OLED display screens such as laptops and tablets.
The project will effectively meet the growing market demand for IT-type OLED displays, and promote the OLED display industry to rapidly enter the stage of medium size development.
This is after BOE took the lead in mass production of China’s first 6th generation flexible AMOLED production line, once again with leading technical strength for China’s OLED industry to establish a new milestone, but also open a new era of OLED industry development.
Boe’s 8.6-generation AMOLED production line project can process larger substrate sizes, effectively improve the slicing efficiency of medium-size products, and reduce production costs. At the same time, by using the new OLED display technology, BOE’s 8.6-generation AMOLED production line can effectively improve the backplane and OLED light-emitting device preparation process, with lower power consumption and longer life, and more suitable for the use of medium-size IT products.
Since the relevant technology has achieved stable mass production in mobile phone products, coupled with BOE’s experienced high-level technology research and development team will also provide a strong guarantee for project construction and rapid mass production, so that BOE’s 8.6gen AMOLED production line project has a natural advantage in terms of mass production timeliness and production efficiency.
At present, consumers put forward thinner and more portable demand for laptops and tablets, promoting IT products to continue to flexible flat, folding, curling and even free form ultimate promotion, for the medium size OLED display products to bring broad market prospects. Omdia data show that OLED notebook panel shipments in 2022 are about 6 million, an increase of 19% year-on-year. According to DSCC forecast, by 2026 OLED in the high-end IT market will be 51% compound annual growth rate to 44 million, OLED display will occupy 75% of the high-end IT market share.
Boe’s 8.6-generation AMOLED production line project will effectively meet consumers’ demand for light and portable IT products, and promote the innovation of OLED technology while also driving the iterative upgrading of downstream notebook and tablet computer products.
Boe’s 8.6gen AMOLED production line project has a total investment of 63 billion yuan, and the registered capital of the project company is 38 billion yuan through co-construction by BOE and Chengdu, of which BOE has raised and increased the capital in equal proportion to 19.994 billion yuan. Chengdu raised and increased capital to 18.006 billion yuan through investment platforms – Chengdu Major Industrialization Project Phase I Equity Investment Fund Co., LTD and Chengdu High-tech Zone Electronic Information Industry Development Co., LTD. The difference between the total investment and the registered capital of 25 billion yuan shall be settled through the bank loan of the project company. Through joint construction, the source of construction funds can be effectively guaranteed.
Since the construction and mass production of China’s first 6th generation flexible AMOLED production line, BOE, as a leader in the OLED industry, has always been committed to promoting the development of China and even the global OLED industry. The construction of BOE’s 8.6-generation AMOLED production line will further enhance the technical level of China’s display industry and is of great significance for promoting the optimization and upgrading of the semiconductor display industry.
At the same time, BOE also announced on the same day that it intends to change the use of about 500 million shares in the repurchase special securities account, changing “for the implementation of the company’s equity incentive plan” to “for cancellation and corresponding reduction of registered capital”, and effectively improve the return on investment of shareholders and maintain the value of the company by further improving the level of earnings per share.
In the future, BOE will continue to uphold the respect for technology and adhere to innovation, continue to lead the innovation of the global display industry, and promote the steady development of the industry towards a healthy, green and sustainable direction.