Tianma Buys Equipment for Phase 2 of Gen 6 OLED Fab
July 22, 2019
Tianma is in the process of a phase 2 expansion of its Wuhan Gen 6 OLED fab and has contracted with SFA Engineering to install production equipment. The original contract runs through 7/15 of this year but has now been extended until March of 2020. The contract, which is for $52.3m does not specify what type of equipment is being delivered, but SFA sells a variety of equipment ranging from substrate cleaners, panel movers, and substrate cutters, to sputtering and deposition equipment. While the size of the expansion remains unspecified, it should be larger than the phase 1 project, which was 15,000 sheets/month. Earlier filings indicated phase 2 would be as large as 22,500 sheets/month, which would more than double the fab’s capacity, and would increase Tianma’s overall raw small panel OLED capacity by 57.5% by the end of 2020. Tianma is currently the 2nd largest producer of small panel displays worldwide, with a 15.6% share of the small panel market by sales, 2nd only to Samsung Display. With the expansion of the Wuhan OLED fab, Tianma should be able to maintain its #2 position until all the 4 Gen 6 OLED fabs at BOE are in full production. Most recently Tianma has been supplying displays, along with Samsung Display for Google’s Pixel 3a family, among others.