Tianma to restructure, again
Tianma (000050.CH) announced that it will restructure a portion of its display holdings through a non-public offering where companies of China Aviation International (pvt) (aka AVIC), a state owned aerospace and defense company, will their portion of Xiamen Tianma, the display producing assets owned by a JV between China Aviation and other investment and industry funding organizations, which are managed by Tianma Microelectronics. Entities of AVIC will retain an ownership of 31% of Tianma itself. Tianma will also issue shares to 10 or less non-public investors to raise capital for the transaction and its G6 LTPS fab, which is expected to begin production within the next month or so and will own through other entities, a 100% stake in the Gen 6 OLED fab under construction in Shanghai.
According to the company, the restructuring will reduce the layers of management in their display assets and will increase the company’s competitiveness. Tianma’s current share of the display market by capacity is ~1%, with a focus on small panel display production. Tianma has restructured a number of times over the last few years under the same basic mantra of ‘increased efficiency, faster time to market, and flexible customer support’ but has been unable to grow significantly over the last three years.
According to the company, the restructuring will reduce the layers of management in their display assets and will increase the company’s competitiveness. Tianma’s current share of the display market by capacity is ~1%, with a focus on small panel display production. Tianma has restructured a number of times over the last few years under the same basic mantra of ‘increased efficiency, faster time to market, and flexible customer support’ but has been unable to grow significantly over the last three years.
Tianma Monthly Display Revenue - Source: SCMR LLC, Displaysearch, IHS
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