BOE Commits to $6.8 Billion Flex OLED Fab

BOE plans to establish a G6 flexible OLED factory with a capacity of 48,000 substrates per month in Mianyang City, in Western China with an investment of $6.94 billion, it said (the document in Chinese is here). The plant will be the third OLED fab for BOE following a small 5.5G rigid OLED factory in Ordos city (4K per month) and a new G6 flexible fab in Qingdao, China (BOE To Bring Flexible Display Online)

Analyst Comment

Wow, what a change in the last year. I was a bit sceptical about the rush to OLED, but it looks as though I was wrong. Clearly, you don’t bet $7 billion dollars if you’re not very confident that you can do what you want. BOE, of course, is not the only one as CSOT, Tianma, Everdisplay, Visionox and Royole are all looking at some level of OLED supply. Not everyone is convinced. AUO’s Paul Peng said in the company’s results call that although AUO recognises the high growth in OLED supply (he expects OLED to double in 2017), his company is not convinced that it can make a return by investing in the technology. The company is looking at investment, but ‘prudent’ investments. (BR)