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BOE Approves New 6th Gen Fab
December 22, 2016

 

 

 

BOE shareholders voted to approve construction of a new Gen 6 flexible OLED fab, the 3rd OLED display production line from the Beijing-based panel producer, along with a small Gen 8.5 pilot production line.  The BOE Board of Directors had approved a ‘framework’ for the fab last month, as noted in our 10/31/2016 note.  The cost is expected to be $6.86b, with considerable financing and incentives from the local Mianyang Municipal Government, who are also providing 1,200 acres for the construction and an additional 800 acres for infrastructure, which it will also provide.

 The new fab is expected to have a maximum capacity of 48,000 sheets/month, built-out in two phases, and will use LTPS technology for the backplane.  We model initial production in July 2019 (phase 1) and full capacity (phase 2) roughly a year later.  While BOE has been very aggressive toward building OLED capacity, the company has struggled to commercialize OLED manufacturing until late this year, when it began to supply small panel OLED displays to Chinese smartphone brand Xiaomi, but is still a few quarters away from large-scale production.  The new fab would be the company’s 1st flexible OLED fab and could begin production in late 2019.  






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