Shanjin Optoelectronics Investing $847M in High-End Polarizers

Shanjin Optoelectronics (also known as Shanshan) plans to invest up to 6 billion yuan ($847 million).in this project. The investment will be split between fixed assets (approximately 4.5 billion yuan or $635 million) and working capital. The project aims to produce 40 million square meters of polarizers annually.

Source: Shanjin Optoelectronics

China’s production capacity in LCD and OLED panels exceeds 70% and 40% of the global capacity, respectively. However, there is a significant gap in domestic production capacity for polarizers, especially in high-end applications, which currently rely on imports.

Back in September 2023, Shanjin Optoelectronics planned to acquire LG Chem’s polarizer business and related assets in China, South Korea, and Vietnam for about 1.4 billion yuan ($197 million). The acquisition included plans to relocate the South Korean production lines to China. The deal encompasses products for OLED displays and LCDs used in automobiles and Apple products. The sale was aimed at enabling LG Chem to better allocate its resources, aligning with its focus on growth sectors such as battery materials, sustainability, and innovative drugs.

Shanjin Optoelectronics is looking to close the gap in the lack of local suppliers of polarizers for the OLED market as Chinese manufacturers look to expand their OLED sales into automotive, IT products, and wearables. The company has doubled operating income in the first nine months of 2023 over last year.