China Earthquake
China’s Sichuan province was hit with a magnitude 6.8 earthquake in a relatively remote area near the Tibetan border, causing 66 deaths, 250 injuries, and the evacuation of over 5,000 people from the area. This follows the lockdown of the Sichuan Provincial capital Chengdu, a city of ~21m, last Thursday, in order to try to control a COVID-19 outbreak and the closure of many factories in August due to power blackouts caused by the record heat and lack of rain, causing hydroelectric power systems to fail to meet typical power requirements. Despite the quake, Chengdu remains on lockdown.
There are a number of LCD and OLED fabs in Chengdu, particularly those of BOE (200725.CH) and Tianma (000050.CH). We don’t have information on the status of these fabs due to the lockdown, however given that Chengdu is ~125 miles from the quake’s epicenter, we expect the damage to the city was relatively light, although power was lost in Chengdu and Chongqing nearby for some residents. A quick look at display facilities in Chengdu show that ~8.6% of BOE’s LCD capacity is produced in Chengdu fabs while 18.4% of the company’s OLED capacity is produced in the local area, so it would seem that local shutdowns, if they were to or have fully closed, would be relatively minor unless sustained for an extended period. BOE has made no public comment about either the effects of the lockdown or the earthquake to date.
There are a number of LCD and OLED fabs in Chengdu, particularly those of BOE (200725.CH) and Tianma (000050.CH). We don’t have information on the status of these fabs due to the lockdown, however given that Chengdu is ~125 miles from the quake’s epicenter, we expect the damage to the city was relatively light, although power was lost in Chengdu and Chongqing nearby for some residents. A quick look at display facilities in Chengdu show that ~8.6% of BOE’s LCD capacity is produced in Chengdu fabs while 18.4% of the company’s OLED capacity is produced in the local area, so it would seem that local shutdowns, if they were to or have fully closed, would be relatively minor unless sustained for an extended period. BOE has made no public comment about either the effects of the lockdown or the earthquake to date.
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