BOE invests 70 billion yuan to build the world's highest generation panel production line

Latest update time：2021-08-30 23:02

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Mo Dakang's note: Learning from BOE's spirit and daring to make big investments is undoubtedly a spirit of the times. BOE has ambitions and goals, and as a catch-up in this era, it must have a spirit of selfless dedication. Although there must be many critics, let them speak.

BOE Technology Group Co., Ltd. (BOE) ( BOE A : 000725 ; BOE B : 200725) announced that it plans to build a 10.5 -generation thin-film transistor liquid crystal display device production line project in Hefei, Anhui Province, and will also build an 8.5 - generation new semiconductor display device production line project in Fuzhou.

Launch of the world's highest generation panel production line

The news that BOE was planning to build a 10.5 -generation line had been circulated as early as the beginning of last year. Before the announcement was released, BOE Vice President Zhang Yu told reporters that there were indeed customers demanding 10.5 -generation line products, and the company had also conducted various research and discussions on whether to launch the 10.5- generation line.

It is understood that the world's highest-generation panel line is Sharp's 10th generation line in Japan, with a glass substrate size of 3130 × 2880mm , while the 10.5th generation line launched by BOE this time has a glass substrate size of 3370 × 2940mm , which can be called the world's highest-generation panel line.

According to the announcement, Hefei's 10.5th -generation thin-film transistor liquid crystal display device production line project mainly produces high-end smart TVs and digital information display screens with ultra-large sizes and ultra-high resolutions above 60 inches, with a designed production capacity of 90,000 glass substrates per month and a total investment of 40 billion yuan. The project is scheduled to start construction before the first quarter of 2016 and is expected to be put into production before the end of 2018 .

According to data from industry consulting firm IHS Display Search , the demand area for products 60 inches and above will reach 20 million square meters in 2021. The 10th generation line is the most efficient production line for cutting products above 60 inches. After the completion of BOE's Hefei 10.5th generation line, it will effectively fill the huge production capacity gap.

BOE also announced that it has signed an investment framework agreement with the Fuzhou Municipal Government and Fuzhou Urban Construction Investment Group Co., Ltd. for the BOE Fuzhou 8.5th Generation New Semiconductor Display Device Production Line Project. The project is used to produce large-size, ultra-high-resolution high-end smart TVs and digital information display screens, with a designed production capacity of 120,000 glass substrates per month, with a glass substrate size of 2500mm × 2200mm , and a total investment of 30 billion yuan.

Regarding the source of project funds, Zhang Yu said that the total project investment consists of capital and bank loans, and the capital portion of the above two projects will not be obtained through capital market financing.

So far, BOE has built and planned to build a total of 10 panel lines, including 1 4.5 -generation line, 1 5 - generation line, 2 6 - generation lines, 4 8.5 - generation lines, 1 10.5 -generation line, and 1 5.5 - generation AMOLED panel line.

Zhang Yu believes that with the development of the new Internet era, the change in consumer consumption concepts and the continuous advancement of TFT technology, the market for large-size ultra-high-definition products is expected to rise. In 2015 , the average size of Chinese TVs will reach 42.7 inches, and consumers are more inclined to choose products with larger screens and better display effects. In addition, the demand for large screens in the commercial market is gradually increasing. With the rise of new technology applications, it will bring new development opportunities to the panel industry, and the market prospects are broad.

According to data from industry consulting firm IHS Display Search , the global flat panel display market demand will show a steady growth trend in the next five years. It is estimated that the demand area for medium and large-sized ultra-high-definition panels will be 30.4 million square meters in 2015 , and by 2019 , this figure will reach 77.7 million square meters, with a compound annual growth rate of 26.4% . Among them, it is estimated that the demand area for ultra-high-definition panels above 60 inches will be 10.4 million square meters in 2015 , and by 2019 , this figure will reach 18.9 million square meters, with a compound annual growth rate of 33.1% , and the market demand will increase significantly.

Net profit in 2014 was RMB 2.56 billion, up 8.87% year-on-year

In addition, BOE also released its 2014 financial report: in 2014 , the company achieved operating revenue of 36.82 billion yuan, a year-on-year increase of 9.01% ; among them, the net profit attributable to shareholders of listed companies was 2.56 billion yuan, a year-on-year increase of 8.87% .

Data shows that BOE's operating income has shown a steady upward trend in the past three years, rising from 25.77 billion yuan in 2012 to 36.82 billion yuan in 2014 ; net profit has also increased significantly, from 258 million yuan in 2012 to 2.562 billion yuan in 2014 .

In addition, since 2011 , its annual number of new patent applications has also increased significantly, from 1,292 in 2011 to 5,116 in 2014 , an increase of more than 4 times. At the same time, BOE 's market share of smartphone and tablet LCD panels in 2014 was 20% and 31% respectively , both ranking first in the world; the coverage rate of global first-launch products was as high as 38% .

The annual report shows that in 2014 , the company's production lines continued to adjust their production lines, and the results of product structure optimization became apparent. The production capacity of the Hefei 8.5 -generation line has exceeded 100K/ month, and through independent technological improvements, it has significantly exceeded the designed capacity of 90K/ month. The production line was put into production, reached full production capacity, and made a profit in the same year.

In 2014 , the market price of small-size LCD panels weakened and gradually stabilized; the market for medium and large-size LCD panels has been steadily improving since the second half of the year, with prices continuing to rise. Some TV panels were in short supply, and the overall good market supply and demand situation for medium and large-size panels continued into the first quarter of 2015 .

Source : China Business News