Black Cattle digs deep
Back in September of last year we noted that Chinese soybean and cereal producer Black Cattle Food Co (002387.CH) had decided to branch out and become a producer of OLED displays and we followed up with notes in October, November and a contract for OLED processing tools in January of this year. While we had our doubts as to the viability of an OLED fab being built by a food processing company, we have to admit that things seem to be progressing. The fab, which is being built in cooperation with Kunshan based Visionox (pvt), seems to have gotten off the ground, or at least in the ground.
We have information that the main pilings for the fab building will be completed by the end of this month, which means at least a portion of the funding for the Gen 6 OLED plant has been completed. The original plan was for a total cost of $4.48b for the fab, with Black Cattle partnering with the Kunshan State Investment Group (34.28%), the Kunshan Yangchen Wei Business Group (12.28%) and Kunshan Venture Holdings (3.14%), although we do not know the state of the investment funding at this point. We have to admit that we had very low expectations for this fab to even make it past the planning stage, but it seems that we were wrong and the fab is at least being built. Our biggest concern is not the construction of the fab itself, but the concept that when fabs are being built by companies that have no direct contact with the industry, it has the potential to signal a top. Wait, we do expect a slew of new OLED fabs to be built over the next two or three years, but every time we hear of a partially funded OLED fab being planned by a company with no stake in the industry our ‘dadar’ (display radar) blips, our ‘dpar’ (display paranoia) kicks in, and our Fennec-like ears perk up…
We have information that the main pilings for the fab building will be completed by the end of this month, which means at least a portion of the funding for the Gen 6 OLED plant has been completed. The original plan was for a total cost of $4.48b for the fab, with Black Cattle partnering with the Kunshan State Investment Group (34.28%), the Kunshan Yangchen Wei Business Group (12.28%) and Kunshan Venture Holdings (3.14%), although we do not know the state of the investment funding at this point. We have to admit that we had very low expectations for this fab to even make it past the planning stage, but it seems that we were wrong and the fab is at least being built. Our biggest concern is not the construction of the fab itself, but the concept that when fabs are being built by companies that have no direct contact with the industry, it has the potential to signal a top. Wait, we do expect a slew of new OLED fabs to be built over the next two or three years, but every time we hear of a partially funded OLED fab being planned by a company with no stake in the industry our ‘dadar’ (display radar) blips, our ‘dpar’ (display paranoia) kicks in, and our Fennec-like ears perk up…
Fennec - Source: Viralnova.com
RSS Feed