Clear positioning
Focus on high-end touch displays
According to the announcement, this investment BOE plans to cooperate with the designated investment platform of Chengdu High-tech Zone - Chengdu Major Industrialization Project Phase I Equity Investment Fund Co., Ltd. and Chengdu High-tech Zone Electronic Information Industry Development Co., Ltd. to invest and construct. The registered capital of the project company is 38 billion yuan, of which BOE raised 19.9994 billion yuan, the first phase of heavy industry raised 9.0003 billion yuan, and the electronics The company raised 9.0003 billion yuan, and the difference between the total project investment and the registered capital was partially settled through external financing of the project company.
The project will be constructed in two phases, with a cycle of about 34 months. According to the announcement, the project’s design production capacity: 32,000 pieces/month glass substrate investment. The main products are positioned at high-end touch displays such as laptops and tablets, promoting the upgrading of medium-sized IT products to OLED screens, and exploring the broad market for medium-sized OLED screen products.
Regarding this investment, BOE stated that the project, as a new type of semiconductor display device, is a nationally encouraged industry and uses new display technologies such as OLED light-emitting device preparation processes. The construction of the project will accelerate the implementation of new strategic industry projects and is an important measure to improve the level of display technology. It is of great significance to promote the optimization and upgrading of the semiconductor display industry.
As AMOLED display products are widely used in mobile phones, smart wearables and other fields, and continue to penetrate into the field of small and medium-sized displays, AMOLED products will gradually become a mainstream trend. BOE said that with the upgrading of display panels in various downstream application fields of OLED, the market size continues to increase. According to Omdia data, OLED laptop panel shipments will be approximately 6 million units in 2026, a year-on-year increase of 19%. According to DSCC predictions, by 2026, OLED in the high-end IT market will grow at a compound annual growth rate of 51% to 44 million pieces. Therefore, the medium-sized IT product market corresponding to the project has broad market prospects in the future.
Continuously increasing
Chengdu's new display industry accelerates its rise
BOE is a global leader in the display field. In the first half of 2023, BOE’s LCD display The shipment volume of the overall screen field and the five major mainstream application fields ranks first in the world.
This year is the 16th year that BOE has settled in Chengdu. Since its first investment of 3.1 billion yuan in the 4.5th generation TFT-LCD in Chengdu in 2007, BOE has continued to deploy the display industry in Chengdu. In 2011, based on the good operation of the 4.5-generation production line, BOE Group decided to expand the LTPS LCD panel production line in Chengdu to target the high-end market and achieve industrial upgrading. On October 26, 2017, China's first and the world's second 6th generation flexible OLED panel production line went into mass production in Chengdu.
Regarding the continuous layout in Sichuan and Chengdu, the relevant person in charge of BOE said that this is mainly due to the fact that Chengdu has a complete electronic information industry chain, abundant talents, good transportation and logistics conditions, and has unique advantages in developing the display industry. "As early as 2007, BOE invested 4.5 billion yuan to build the 4.5th generation TFT-LCD project in Chengdu High-tech Zone. With this investment in the 8.6th generation AMOLED production line, BOE's total investment in Sichuan and Chongqing has exceeded 200 billion yuan."
The display industry is a key industry direction supported by Sichuan Province and Chengdu City. Data shows that in 2021, Chengdu's new display's main revenue will reach 60.269 billion yuan, becoming one of the pillar industries with the most development potential in Chengdu. The "Research on the Top Ten New Display Cities and Competitiveness in 2022" released by CCID Consulting previously showed that among the "Five Cities for Flexible Display in 2022", Chengdu ranked first before Wuhan, Chongqing and other cities.
In Chengdu's "Building Circles and Strengthening Chains" campaign, BOE is the "chain owner" in the "new display" subdivision of the electronic information industry. Driven by chain owners, the Chengdu display industry ecosystem continues to expand. At present, Chengdu has a complete display industry ecological chain, and has established a relatively complete industrial chain system from polarizers, masks, industrial gases to panel manufacturing, to terminal applications such as laptops, TVs, mobile phones, and car displays; it has gathered more than 250 new display companies such as BOE, China Optoelectronics, and TCL.
This time BOE has invested again in Chengdu, which will undoubtedly bring new momentum to the construction of industrial circles and strong links. Talking about the future development of Chengdu’s new display industry, Chengdu The relevant person in charge of the Municipal Bureau of Economy and Information Technology said that in the "jigsaw puzzle" of Chengdu's trillion-level electronic information industry, the new display industry is an important part of the "core, screen, end, soft and intelligent network" subdivision. From a policy perspective, many “top-level designs” for Chengdu’s industrial development have planned development paths for the new display industry. In the next step, Chengdu will continue to expand upstream and downstream of the industrial chain and accelerate the creation of a "100-billion-level" new display industry R&D and manufacturing base.
(Chengdu Daily Jinguan News Reporter Liu Taishan)
ANNA