BOE Ships product from new Gen 8.5 LCD fab
Back in early February, we mentioned that BOE (200725.CH) had turned on its newest Gen 8.5 LCD fab in Fuzhou, China. We believe the fab is now in production and is delivering product to a number of brands including Samsung Electronics, LG Electronics, and almost all of the Chinese TV brands. The new line, which will have a capacity of 120,000 sheets/month (phase 2) and will focus on both TV and monitor panel production will have some capabilities for oxide backplane production, although we believe the bulk of backplanes produced at the fab will be a-Si. .
While there are a number of producers[i] of 43” panels, the BOE fab has been focused on the fact that it can cut 10 43” panels from a single Gen 8.5 substrate, while other fabs can cut 8 from the same size substrate, making it far more efficient. 43” panel pricing has been on the rise as a shortage of these TV panels arose from both plant closings and production issues at Samsung Display (pvt) last year. Once BOE becomes fully qualified and is operating at utilization rates comparable to other vendors, the increased output could alleviate some of the upward pricing pressure on 43” TV panels.
[i] LG Display is the largest producer, with AU Optronics and China Star smaller suppliers.
While there are a number of producers[i] of 43” panels, the BOE fab has been focused on the fact that it can cut 10 43” panels from a single Gen 8.5 substrate, while other fabs can cut 8 from the same size substrate, making it far more efficient. 43” panel pricing has been on the rise as a shortage of these TV panels arose from both plant closings and production issues at Samsung Display (pvt) last year. Once BOE becomes fully qualified and is operating at utilization rates comparable to other vendors, the increased output could alleviate some of the upward pricing pressure on 43” TV panels.
[i] LG Display is the largest producer, with AU Optronics and China Star smaller suppliers.
43" TV Panel Pricing - Source: SCMR LLC, Displaysearc
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