China's first 5.5 generation AMOLED production line put into operation

BOE Technology Group Limited by Share Ltd (BOE A, 000725) last night announced that a total investment of 22 billion yuan, Chinese's first 5.5 generation AMOLED production line in November 21st light production, this is the world's second 5.5 generation AMOLED production line. The project put into operation marks China's independent innovation, the most advanced technology of the world's most advanced semiconductor display production line into the production and operation phase, is also expected to further enhance the profitability of the BOE panel business.

Announcements, the project is located in Ordos, the construction area of about 467 thousand square meters, the design capacity of 54 thousand glass substrate / month, the product positioning is mainly for small and medium size LTPS and AMOLED high-end display devices.

Public information, AMOLED refers to the active matrix organic light-emitting diode panel. Compared with the traditional liquid crystal panel, AMOLED has the advantages of fast reaction speed, high contrast, wide viewing angle and so on. Thin, soft AMOLED is regarded as the next generation of display technology, favored by many international manufacturers, including apple, Samsung, etc..

According to media reports, in addition to production Ordos the 5.5 generation AMOLED production line, BOE and the two panel production line construction in Hefei: one is the 8.5 generation of TFT-LCD oxide production line, started construction in May 2012, the first quarter of 2014 is expected to put into operation; one is Chongqing's 8.5 generation semiconductor display device production line. Construction started in July 2013, is expected to start production in the two quarter of 2015.

The first three quarters of this year, the BOE net profit of $1 billion 360 million, which is the BOE for the 4 consecutive quarter to achieve profitability. For the results of 2013, BOE expects net profit of 1 billion 800 million -20 billion yuan, an increase of 597% ~ 675%.

For performance growth, the BOE said mainly due to two reasons, first, in 2013 the average price of the overall panel smooth fluctuations over the same period. The second half of the large size panel prices fell significantly, small and medium size panel price volatility is small; second is because the line layout gradually improve, production capacity was significantly higher than the same period last year, operating results continue to reflect the scale.