Visionox has announced a significant investment partnership to establish an advanced AMOLED production line in Hefei. The project is estimated to cost 55 billion yuan ($7.7 billion).
In an official announcement, Visionox says it has signed an investment framework agreement with Hefei Jianxiang Investment Co., Ltd. and Hefei Xincheng Holdings Group Co., Ltd., both state-backed entities. The agreement outlines the creation of a new project company in the Hefei Xinzhan High-Tech Industrial Development Zone, which will oversee the investment, construction, and operation of the production line.
The total investment for the project is divided into 33 billion yuan ($4.6 billion) in equity investment and 22 billion yuan ($3.1 billion) in debt financing. Visionox will contribute 400 million yuan ($56 million) in the initial phase, securing a 20% stake in the project. Meanwhile, Hefei Jianxiang and Hefei Xincheng will jointly invest 1.6 billion yuan ($224 million), acquiring an 80% stake in the new company.
As part of the agreement, Visionox will relinquish some of its preferential rights to make capital contributions, resulting in the company no longer consolidating Hefei Guoxian Technology Co., Ltd., its wholly-owned subsidiary, in its financial statements after the first round of capital increases. Hefei Guoxian will serve as the investment, construction, and operational platform for the AMOLED production line.
The state-backed partners involved in the project highlight the strategic importance of this initiative. Hefei Jianxiang Investment is fully controlled by the State-owned Assets Supervision and Administration Commission (SASAC) of the Hefei Municipal People’s Government, while Hefei Xincheng is managed by the Finance Bureau of the Hefei Xinzhan High-Tech Industrial Development Zone, also under SASAC oversight.
Given the long construction period, the registered capital will be injected in phases according to the project’s progress. The company stated that in the short term, this investment would not have a significant impact on its financial health, but the long-term effects would depend on the pace and success of the project’s implementation.
This move is seen as part of Visionox’s broader strategy to strengthen its position in the increasingly competitive global market for display technologies, where demand for high-quality AMOLED screens continues to rise, driven by applications in smartphones, televisions, and other consumer electronics.
The Elec is expressing its concerns over Visionox’s ability to leverage its proprietary ViP process over traditional FMM. According the paper’s report, industry insiders – you can also read that as Korean competitors who want to assuage any concerns about Chinese competition – estimate that only a portion of the planned monthly output may use the ViP method, with the remainder likely relying on FMM due to mass production challenges. The decision on manufacturing methods will significantly impact equipment procurement and supplier partnerships, with Applied Materials (AMAT) and YAS as potential suppliers for non-FMM deposition equipment. Ultimate, Visionox’s Korean competitors want you to know that to secure customers in a competitive market, where technological advancements like higher resolution and longer lifespan OLEDs are key differentiators, the company faces numerous challenges figuring out how to differentiate itself.. In the meantime, Chinese companies like Visionox continue to build out OLED capacity at a rapid pace.
