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BOE A: Both LCD and AMOLED production lines are operating steadily
Recently, BOE stated during an institutional survey that at present, the company's existing production lines are operating steadily. By flexibly adjusting the layout of production lines, adjusting the product structure, increasing the sales volume of high value-added products, and actively responding to external demand. At the same time, the company has intensively cultivated market segments and achieved a steady increase in the market share of each segment.
According to reports, BOE's production lines below the 6th generation will gradually shift to display market segments and sensors such as automotive, industrial control, electronic tags, medical and other application products; Chongqing, Hefei and Beijing three 8.5 generations The line will flexibly adjust the product structure according to market demand, corresponding to LCD mobile phone displays, notebook computer displays, monitor-type displays and 32-65-inch TV displays; the Fuzhou 8.5-generation line will apply sleeve cutting technology and focus on the layout 43 Inch TV display and some curved products.
Hefei's 10.5-generation line has a designed production capacity of 120,000 sheets per month, and mass production has already begun in March. This layout will further make up for the insufficient supply of large-size products of 65 inches and above, and further increase the company's market share and comprehensive competitiveness in large-size TV LCD panels. Full production is expected in the first half of 2019.
In terms of LCD for Samsung, the sixth-generation flexible AMOLED production line in Chengdu was lighted up and put into production on May 11, 2017. With advanced technologies such as thin panels and ultra-narrow bezels, the products are mainly positioned in new semiconductor high-end touch flexible displays suitable for smart phones and wearable devices.
The 6th generation flexible AMOLED production line in Mianyang is currently under construction and is expected to be put into production in 2019. The company announced the construction and investment of the Chongqing 6th generation flexible AMOLED production line project in Chongqing, which is the same as the total investment of the Chengdu 6th generation line and the Mianyang 6th generation line, both of 46.5 billion yuan, and the same design capacity, both 48K/month. As these three or two flexible AMOLED production lines are put into production one after another, it will be able to establish the company's market competitive advantage in the field of flexible AMOLED, and will enable the company to provide global brand manufacturers with the ability to provide high-quality flexible AMOELD screens.
BOE stated that as the company's production capacity is gradually enriched, the synergy effect of multiple production lines will be exerted in the future to maintain the flexibility of the product structure within the group, and the product categories of various production lines tend to be concentrated and standardized.
In recent years, BOE has been adhering to the road of independent research and development. As of the end of March, the comprehensive yield rate of LCD for Samsung has reached more than 65%, and it is expected to reach more than 70% next year.
But BOE has not always been successful. In the 1980s, electronic tube technology was replaced by semiconductor technology, and BOE was on the verge of bankruptcy. In 1993, its employees raised funds to establish what is now Beijing Dongfang Electronics Group Co., Ltd. Starting from the foundry of electronic components, through the country's own support and its own efforts, it finally demonstrated its own screen production technology. In the first quarter of 2018, it achieved the world's number one global LCD TV panel shipment.
I have to admit that there is still a certain gap between BOE and Samsung. It is reported that Samsung’s product yield rate may reach 80%, and there is still room for improvement. BOE and Samsung also maintain a relationship of competition and cooperation, and have in-depth cooperation with Samsung in all aspects in order to maximize the interests of both parties. Although my country's panel production started late, it is no less technologically inferior to the large Korean companies, but there is still a certain gap between the yield rate and Samsung and other companies. After the technical problems have been overcome, the improvement in the yield rate is only a matter of time.
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