Taiwanese sources have highlighted that HKC Optoelectronics, based in Chongqing, China, is to build a new LCD fab in Zhengzhou, China, that will make panels from 65″ on a G11 fab. The investment level is reported as CNY40 billion ($6.4 billion). Following on from the announcement, the company is reported to have decided to build a third G8.6 LCD plant in Sichuan, to supplement existing lines in Chongqing (that started production in March 2017) and a second in Chuzhou.
Construction of the G8.6 fab is due to start in the next couple of months, with volume early in 2019, but no timing was reported for the G11 fab.
Analyst Comment
We met up with HKC at the BETT show earlier this year. The company has had a monitor and OEM business in Europe and in the US for some years. In Europe it is based in the Netherlands but told us that it intends to set up an office in the UK.
IHS Markit expects HKC to increase its TV business plan this year by around 25% to over 5 million this year. However, as we have reported, (HKC Launches Patent Infringement Counter Suit Against Innolux) the company is involved in a patent dispute with Innolux that might still cause it problems. Focus Taiwan reports that HKC started an office in Taiwan to recruit staff from the LCD and TV business. (BR)
