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China's BOE to Make Massive Investment in AMOLED Display Production
Chasing Korean Display Companies
China's BOE to Make Massive Investment in AMOLED Display Production
  • By Michael Herh
  • December 28, 2018, 11:29
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China's BOE signed a contract with Fuzhou of Fujian Province, China to invest 46.5 billion yuan (US$6.77 billion) to build flexible AMOLED production lines. 

Chinese display maker BOE laid out a plan to build a 6th-generation flexible organic light emitting diode (AMOLED) display production line by investing more than 7 trillion won (US$6.3 billion). The announcement signaled the start of China’s full-scale promotion of the display industry at the national level. Therefore, the Korean display industry is closely monitoring BOE's investment.

According to the display industry on Dec. 27, BOE signed a contract to invest 46.5 billion yuan (US$6.77 billion) in a flexible AMOLED production line with Fuzhou of Fujian Province, China.

BOE will be able to produce 48,000 glass substrates per month if the production line becomes fully operational. The local government made a policy that it would not spare any support in the construction process, ranging from environmental evaluation of the site, where the factory would be built, to energy supply.

The plant, when completed, will raise the number of BOE’s sixth-generation AMOLED display factories to four. Display industry analysts say that the plan shows BOE's determination to take the lead in the AMOLED display industry in the future. Demand for AMOLED displays is expected to grow explosively as they will be used for foldable phones.

If BOE starts full-scale mass production of AMOLED displays, it will inevitably affect Korean companies' AMOLED monopoly. The Korea Display Industry Association (KDIA) forecast that China's AMOLED panel production capacity would increase more than 20-fold from 1,587,000 square meters this year to 34,923,000 square meters in 2022. In the same period, Korea's production capacity will more than double from 14,736,000 square meters to 31,432,000 square meters.