Tianma gets funding for Phase 2 Wuhan OLED fab
A few days ago Tianma (000050.CH) signed for a syndicated loan of 6b yuan (~$856m US) to finance the second phase of its Gen 6 Rigid/Flex fab in Wuhan. The first phase began construction in 2015 ($12b yuan or $1.7b US) and was completed almost two years ago, with the 1st product shipped in June of last year, around when the 2nd phase began its build out. Phase one of the project has a maximum raw capacity of 15,000 sheets/month while phase two, which is expected to be completed at the end of 1Q next year, will have a capacity of 22,500 sheets/month. Tianma also operates a Gen 4.5 pilot line and a Gen 5.5 OLED fab in Shanghai, and is planning on building another Gen 6 fab in Xiamen that is projected to begin operation in late 2022.
Currently we believe Tianma has a 2% share of the overall OLED market and a ~16.6% share of the Chinese OLED panel market, which will decrease as other panel producers in the region add additional capacity. The Xiamen fab will be an important project if Tianma wants to maintain a significant share of the Chinese and world OLED markets. Once the 2nd phase is operational, the fab will have a capacity (raw and unyielded) of ~31m 6” smartphone OLED display units/quarter.
Currently we believe Tianma has a 2% share of the overall OLED market and a ~16.6% share of the Chinese OLED panel market, which will decrease as other panel producers in the region add additional capacity. The Xiamen fab will be an important project if Tianma wants to maintain a significant share of the Chinese and world OLED markets. Once the 2nd phase is operational, the fab will have a capacity (raw and unyielded) of ~31m 6” smartphone OLED display units/quarter.
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