(Yicai Global) June 4 -- Tianma Microelectronics will invest CNY14.5 billion (USD2.3 billion) to expand its flexible screen displays production line by 25 percent, despite the lack of reports about an increasing demand.
The LCD maker will pump up its capacity to make more of the sixth-generation low-temperature polycrystalline silicon displays, with the capabilities of active matrix organic light-emitting diode technology, the Shenzhen-based firm said in a statement. The project will help improve the listed company's status in the markets of small and medium-sized high-end screens.
Samsung Electronics is currently the major AMOLED display panel maker worldwide. Chinese manufacturers are playing catch up though, with displayer giant BOE Technology Group starting mass production of flexible AMOLED screens last October.
After the completing the expansion plan that will take 25 months, Tianma will be able to increase its production capacity by 25 percent to 37,500 AMOLED display panels monthly. The firm has not revealed how many such screens it has produced so far.
Tianma's Wuhan unit will be in charge of constructing the project. The parent firm will inject CNY8.5 billion into Wuhan Tianma, while the latter will borrow CNY6 billion from banks directly, the statement added.
Editor: Emmi Laine