(Yicai Global) April 13 -- Tianma Microelectronics, the world’s largest maker of vehicle displays and instruments, said it will invest CNY33 billion (USD5.2 billion) in an 8.6-generation panel project in the Chinese east coast city of Xiamen.

Xiamen Tianma Microelectronics will set up a joint venture project company with three city government-backed firms, its Shenzhen-based parent company said late yesterday. The new plant will have a monthly processing capacity of 120,000 8.6-gen display panels targeted at the on-board and information technology equipment and industrial display market, it added.

The JV will have registered capital of CNY19.8 billion and Xiamen Tianma will invest nearly CNY3 billion (USD471.2 million) for a 15 percent stake. Bank loans will provide the rest of the funding. Tianma Micro did not disclose the construction schedule.

The project, which will include a 2,250-millimeter x 2,600-mm glass substrate processing line, will complement Tianma Micro’s existing products, fortify its competitiveness in the on-board display market, and speed its expansion in the IT market to meet the diverse needs of consumers, the company said.

The expanding smart electric vehicle industry will drive the long-term development of the vehicle display market, Tianma Micro pointed out, adding that demand for large-screen and high-resolution display panels in the smart EV sector will also continue to increase.

Tianma Micro’s stock price [SHE: 000050] ended little changed today, gaining 0.2 percent to CNY10.14 (USD1.59), after earlier climbing by as much as 3.4 percent.

Editor: Futura Costaglione