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China-based flat panel makers are drawing plans to turn the country into the world’s largest cluster of 10.5/11G panel fabs in the next few years, with total capacity far beyond their peers in Korea, Japan and Taiwan.
China’s panel makers, including BOE Technology, China Star Optoelectronics Technology (CSOT), HKC and China Electronics Corporation (CEC), are spearheading toward such a movement.
BOE is setting up a 10.5G fat in Hefei with plans to kick off production in the first half of 2018. Now, the company is considering building another 10.5G plant in Wuhan, central China, according to industry sources.
CSOT is setting up an 11G line in Shenzhen, which is slated for operations in 2019, but the company plans to construct another 11G fab also in Shenzhen, which may focus on production of AMOLED TV panels, said the sources.
BOE and CSOT have made the ambitious plans in a bid to obtain government subsidies for building new plants before China implements plans to cut such monetary support, said the sources.
On the other hand, HKC is considering building a 11G fab in Sichuan with details likely to be revealed at the end of July, indicated the sources. HKC commenced China’s first 8.6G line in Chongqing in February this year.
Meanwhile, the official website of the Xian High-Tech Industries Development Zone announced recently that it is pushing for the establishment of 10.5G fab in the zone. CEC reportedly is to lead the project with total investment of CNY45 billion (US$6.616 billion).
In addition to the aforementioned six 10.5/11G fabs currently being built or likely to be built in China, Japan-based Sakai Display Products (SDP) is also building a 10.5G fab in Guangzhou, with the first-phase development scheduled for completion in June 2019.
The landscapes of the global flat panel and TV industries are expected to undergo drastic changes when these 10.5/11G fabs begin rolling out display products. Competition among flat panel makers will also enter a new era in which current major players Samsung Display, AU Optronics (AUO) and Innolux may be absent from the 10.5/11G segment.
CSOT is a spearhead of 11G fab peojects in China
Photo: Michael Lee, Digitimes, July 2017
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