Visionox is providing a license to its shareholding companies – including Kunshan Guoxian Optoelectronics Co., Ltd. Display Optoelectronics, Yungu (Gu’an) Technology Co., Ltd., and Bazhou Yungu Electronic Technology Co., Ltd. – under which Visionox will provide 6th generation flexible AMOLED patent technology and corresponding technical services to Hefei Visionox Electronics, a joint venture between Hefei Dongxin Investment Co., Ltd., Hefei Xincheng Holding Group Co., Ltd., and Visionox. In return, Hefei Visionox Electronics will pay Visionox license fees of 275 million yuan ($38 million) and a further fees for technical services of 25 million yuan ($3.5 million). The licensed patents and proprietary technologies include 738 patent applications related to AMOLED inventions, utility model patents, and other patent rights.
Visionox previously had plans to invest in a Gen 8.6 OLED IT production line in Shenzhen. However, economic conditions and technology challenges made that unlikely. It was back in November, 2022, that we learned Visionox was working with the Hefei Municipal People’s Government to build a Gen 6 OLED production line with a total investment of 11 billion yuan ($1.5 billion).
BOE, another significant player in the Chinese display industry, is awaiting local government approval for the construction of an IT OLED production line at the B16 factory in Sichuan. Construction for the Chengdu B16 factory has already started, and further details regarding the implementation timeline are expected to be known next month.
Visionox recently unveiled its VIP technology (Visionox intelligent pixelation) which, the company claims, enables more precise AMOLED pixels and improved product performance. Visionox claims that this technology can increase the effective light-emitting area (aperture ratio) of AMOLED from the traditional 29% to 69% and achieve pixel densities of over 1700 ppi. Additionally, when combined with stacked device technology, it can provide extended device lifespan or increased brightness compared to FMM AMOLED.
What Display Daily Thinks
It was originally assumed that the $1.5 billion investment in the Hefei fab would be staggered. This seems to be part of the ongoing process as the numerous entities involved in this project align their interests. For what it’s worth, the chatter among China’s financial analysts, as well as their recommendations, has been remarkably bullish about companies in the OLED supply chain, like Jilin Allied Photoelectric Materials, with a general sense that local companies can overcome the restrictions of foreign equipment and materials supplies.
