Visionox, Hefei Government Agree to Build Sixth-Gen AMOLED Screen Factory
Tang Shihua
DATE:  Oct 22 2018
/ SOURCE:  Yicai
Visionox, Hefei Government Agree to Build Sixth-Gen AMOLED Screen Factory Visionox, Hefei Government Agree to Build Sixth-Gen AMOLED Screen Factory

(Yicai Global) Oct. 22 -- Screenmaker Vision Technology plans to team up with the Hefei municipal government to construct a factory capable of producing 30,000 substrates a month for sixth-generation active matrix organic light emitting diode displays as it looks to keep pace with its South Korean counterparts.

The pair plan to sign an agreement that will see Visionox and the government's investment arm set up a joint venture to build and operate the plant, which should achieve mass production within 25 months after construction begins, the Chaoyang-based firm said in a statement on Oct. 19. The new firm will have CNY22 billion (USD3.2 billion) in registered capital, with the Hefei government claiming an 82 percent stake. Total investment in the project is estimated at CNY44 billion.

Visionox's screens can be used to make flexible screens for mobile devices, a segment expected to see impressive growth in the near future. It already has a 5.5-gen production line in Kunshan, Jiangsu province, and plans to open a sixth-gen factory in Gu'an, Hebei, by the end of this year.

The compound annual growth rate of the flexible terminal market will be higher than 22 percent over the next five years, Li Yaqin, general manager at tech data consultancy Sigamintell, told Yicai Global. There will be historic development opportunities, and Visionox's new plant will help it meet demand and become more competitive, he added.

Samsung holds a more than 90 percent global share of the flexible AMOLED display market for smartphones, Li said. Chinese online retailer JD.Com is also breaking into the sector, and has two production lines for sixth-gen flexible displays and another on the way, he continued, saying Visionox's new factory will expand the range of suppliers and help the industrial chain grow and mature.

Visionox was born from the OLED research team at Tsinghua University and has been engaged in the sector for 22 years. It ranked third globally in production of AMOLED panels for smartphones in the first half of this year, behind South Korea's Samsung and LG Display, after producing 3.7 million units, Sigmaintell data shows.

Under the agreement, Visionox will build a research and development hub in Hefei to serve as a benchmark for peers nationwide, while the local government will offer support via favourable policies in land, energy, talent and other sectors, the statement added.

Editor: James Boynton

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Keywords:   Hefei,AMOLED,Visionox,Displays,SAMSUNG,LG