Actually not a new fab, but some details on a fab that has been talked about for some time.  TCL (000100.CH) and Huaxing Power (aka China Star (pvt)) have finalized an agreement to build a Gen 6 flexible OLED display line in Wuhan China.  The line, designated T3, is a Gen 6 fab, which is said to have a final raw capacity of 45,000 sheets/month, will be based on LTPS backplane technology and will be oriented toward small and medium panel production.  The expected production date is sometime in 2020, with the project costing a bit over $5b US.  TCL maintains a 55% stake in China Star, along with the 30% stake held by the Shenzhen government and a 10% stake by Samsung.
We have included this fab in our industry model for some time, although we expect the initial production to be closer to 30,000 sheets, and we have used an initial timeframe of early 2020, rather than late 2020, as indicated in the press.  As construction is to begin in June of this year, we still hold out some hope that production can begin a bit earlier than noted.  We also note that a portion of the project is expected to be based on Oxide backplanes, but little is known yet about the ratio between LTPS and Oxide, and how they will be applied to various screen sizes.

LG’s Materials & Production engineering Research Institute, a division of LG Electronics (066570.KS) has transitioned from an internal organization that researched production technologies when LG was first starting out, to a consulting and construction organization that is now attempting to become a turnkey display facilitator.   PRI, as the group has been known for many years, has been supplying equipment under its own brand since last year and now is attempting to expand to a full display production contractor.  While the term ‘turnkey’ can imply a project or contract that is built to the contractor’s specs, and not those of the buyer, almost all display projects are customized to at the least minimal customer specs, including substrate size, backplane type, and other broader details.  In this case, while LG is expected to provide the plant layout, the project level supervision, some of the production equipment, and subcontractors, they will match their expertise to their client’s location and the ability of that area to provide infrastructure to the plant.
Other than responding to requests for general layout and construction topics, PRI is expected to join with Twinstar Display Technologies, a Maharastra, India based company that is controlled by Volcan Investments, a Bahamas based holding company that is part of Vedanta LTD/PLC (VEDL.IN/VEDL.N), a $10b company owned by Anil Agarwal, one of India’s richest industrialists.  Mr. Agarwal pledged to invest over $10b over 5 phases to build an LCD plant in India early last year that will employ 30,000 people, and require 300 acres of land, while bringing actual display panel production to India for the first time, as part of India’s “Make in India” initiative.  The company is exploring partnering with the Indian government on the project.
It is expected to take a few months to gain the necessary approvals and agreements with the India government, PRI is working closely with the groups involved in order to provide a framework that is based on LG Electronics, and LG Display’s (LPL) many years of experience as the world’s largest producer of display panels, and is now looking to take that knowledge and use it to generate substantial capital.  Back in 2015, the Indian TV market was between 40m and 50m units/year, not quite the size of the North American market, but relatively close and growing quickly.  This makes it’s almost imperative that TV brands focus their attention on India, and many have already built component production and TV assembly plants in the country.  The Indian government however, is looking to bring at least some display production on shore, and having LG’s expertise as part of that plan, brings a significant cache to the potential project.  If LG is able to develop a project for India, that it will gain the credibility to do so for other markets that wish to either enter the display business or enhance their own capabilities.