CHONGQING, China -- China's leading display maker, BOE Technology Group, will expand production of OLED panels to meet the demand of Apple and other international clients as it seeks to close the gap with South Korean rivals.
BOE told investors on Wednesday it plans to boost deliveries of OLED planes by nearly 70% this year. Two production lines in Chengdu and Mianyang, in Sichuan Province, are expected to operate at full capacity by the end of the current fiscal year.
A third line in Chongqing is launching full mass production. These increases will raise OLED output to over 100 million units this year from 60 million units in 2021.
The Chongqing line is testing panel quality with top smartphone and tablet manufacturers. The Sichuan facilities are already supplying Apple, and BOE is apparently hoping to have the Chongqing plant deliver panels to Apple as well.
BOE is also considering building a new OLED facility in Chengdu, "evaluating strategies, markets, technology and finances," the company said.
The plan is to bring the new facility online at the end of 2024, though it has yet to announce production capacity.
BOE's revenue surged 62% to 219.3 billion yuan ($34.4 billion) last year. Net profit more than quintupled to 25.8 billion yuan as demand for personal computers and tablets climbed during the pandemic. On top of that, sales volume of OLED panels jumped 67% due to Chinese smartphone makers adopting BOE products for midpriced and high-end devices.
BOE expanded capacity to produce liquid crystal displays thanks in part to investment from local government authorities. The company captured the top global share in large LCD panels, outstripping South Korean rivals.
But when it comes to OLED panels, South Korea's Samsung Electronics and LG Display continue to lead. The startup of the Chongqing facility and the construction of the new Chengdu plant will enable BOE to close in on the competitors.
Sales outside China will factor heavily into the equation. Sales in Asia excluding China grew 75% to 96.1 billion yuan, exceeding the 93.8 billion yuan in sales in mainland China to become the top market. Sales in the Americas multiplied 2.3 times to reach 23.7 billion yuan whiles sales in Europe climbed 14% to 5.4 billion yuan.
Russia's invasion of Ukraine has exacerbated the rift between China and Western economies. This comes on top of ongoing tensions between Washington and Beijing. Because BOE is backed by entities controlled by the Beijing city government, the company will face hurdles that are unique to state-owned enterprises in maintaining growth offshore.
●Origin：NIKKEIAsia
●Link：https://asia.nikkei.com/Business/Electronics/Apple-supplier-BOE-goes-full-throttle-on-OLED-offensive
BOE told investors on Wednesday it plans to boost deliveries of OLED planes by nearly 70% this year. Two production lines in Chengdu and Mianyang, in Sichuan Province, are expected to operate at full capacity by the end of the current fiscal year.
A third line in Chongqing is launching full mass production. These increases will raise OLED output to over 100 million units this year from 60 million units in 2021.
The Chongqing line is testing panel quality with top smartphone and tablet manufacturers. The Sichuan facilities are already supplying Apple, and BOE is apparently hoping to have the Chongqing plant deliver panels to Apple as well.
BOE is also considering building a new OLED facility in Chengdu, "evaluating strategies, markets, technology and finances," the company said.
The plan is to bring the new facility online at the end of 2024, though it has yet to announce production capacity.
BOE's revenue surged 62% to 219.3 billion yuan ($34.4 billion) last year. Net profit more than quintupled to 25.8 billion yuan as demand for personal computers and tablets climbed during the pandemic. On top of that, sales volume of OLED panels jumped 67% due to Chinese smartphone makers adopting BOE products for midpriced and high-end devices.
BOE expanded capacity to produce liquid crystal displays thanks in part to investment from local government authorities. The company captured the top global share in large LCD panels, outstripping South Korean rivals.
But when it comes to OLED panels, South Korea's Samsung Electronics and LG Display continue to lead. The startup of the Chongqing facility and the construction of the new Chengdu plant will enable BOE to close in on the competitors.
Sales outside China will factor heavily into the equation. Sales in Asia excluding China grew 75% to 96.1 billion yuan, exceeding the 93.8 billion yuan in sales in mainland China to become the top market. Sales in the Americas multiplied 2.3 times to reach 23.7 billion yuan whiles sales in Europe climbed 14% to 5.4 billion yuan.
Russia's invasion of Ukraine has exacerbated the rift between China and Western economies. This comes on top of ongoing tensions between Washington and Beijing. Because BOE is backed by entities controlled by the Beijing city government, the company will face hurdles that are unique to state-owned enterprises in maintaining growth offshore.
●Origin：NIKKEIAsia
●Link：https://asia.nikkei.com/Business/Electronics/Apple-supplier-BOE-goes-full-throttle-on-OLED-offensive
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