BOE Funds State Semiconductor Fab Project
China’s largest panel producer BOE (200725.CH) has decided to fund the construction of a 12” semiconductor line by making a $155m investment in Beijing Yandong Microelectronics (state) through its venture arm for a 9.14% share, making it the 2nd largest shareholder behind Beijing Electronics Holding (state), a large state-owned entity that is involved in display, semiconductors, new energy, and information services. The project, which has a total cost of $696m is expected to be a 65nm node line that will be added to Yandong’s 6” and recently completed 8” line. BOE has been expanding its abilities in the IoT space and has a need for a local foundry that has experience (BYM has been in production for almost 30 years) but is not hampered by the restrictions on the use of US sourced EDA tools that could jeopardize BOE’s ability to capture business without a US trade license. The design tools used in the project will be locally sourced, avoiding any conflict with US trade restrictions. No dates were given as to the timeline for the new line.
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