Total investment of 8.17 billion yuan! BOE will invest in a mobile display module project in Qingdao

On August 31, BOE announced that Hefei BOE plans to jointly invest 8.17 billion yuan with Qingdao Haikong and United Dongchuang to build the BOE IoT mobile display port device production base project. The registered capital of the project is 5 billion yuan, of which Hefei BOE will contribute 3.25 billion yuan in cash, Qingdao Haikong will contribute 1.5 billion yuan with its own funds, and United Dongchuang will contribute 250 million yuan with its own funds.

BOE signed the "BOE IoT Mobile Display Port Device Production Base Project Investment Framework Agreement" with Qingdao West Coast New Area Management Committee and Qingdao Haikong, and Hefei BOE signed the "Shareholder Agreement" with Qingdao Haikong and United Dongchuang. The project will build a new fully automatic module production line, and the main processes include partial lamination, TP lamination, BL assembly, etc. After the project is completed, it will have the capacity to produce 151 million display modules of various sizes annually.

As the overseas epidemic has not been significantly alleviated, online economy such as remote work and online education will become the norm. The demand for laptops and tablets is very strong and profitable. Panel manufacturers have shifted their production focus to IT panels, and the supply of mobile phone panels has become more tight. Due to the uncertainty of the development of the epidemic, in order to ensure the security of the supply chain, downstream manufacturers are expected to adopt an active stocking strategy, which will increase the demand for mobile phone panels. The company has arranged production in advance and increased the production capacity of a-Si LCD and LTPS LCD modules to actively respond to the increase in demand for mobile phone panel modules after downstream manufacturers increase their mobile phone production capacity.

Through the construction of this project, BOE's IoT mobile display port device display modules will achieve large-scale and centralized production, the production line operation efficiency will be greatly improved, and the operating costs will be further reduced through improving personnel efficiency, industrial chain integration, equipment technical transformation, etc., thereby improving and strengthening the market competitiveness of the products.

BOE has long-term and stable supply relationships with major downstream manufacturers at home and abroad, and can also sell products through its own brand. Moreover, due to the large number of raw material suppliers and the large project scale, it can obtain the most competitive raw material cost prices in the industry. The company has mastered core semiconductor display technology and has significant technical advantages in the production of a-Si LCD and LTPS LCD module products. It can produce at low cost and in large quantities, and its production lines have greater competitiveness in the industry.

BOE said that the total investment of this project is 8.17 billion yuan, and after completion, it will have the capacity to produce 151 million display modules of various sizes annually. The products can be applied to touch LCD displays of small and medium-sized mobile display products, mainly used in electronic products such as smart phones, tablets, and laptops. The implementation of this project will help further expand BOE's production capacity for mobile display port devices, meet customers' new needs, and improve the profitability of module production lines. In addition, it will deepen BOE's long-term strategic cooperation with global brand customers and enhance the company's market share and competitive advantage in the mobile display product module market.