BOE Commits to Third 6th Gen OLED Fab
March 26, 2018
On March 8, 2018, BOE announced that it was committing to the construction of a Gen 6 flexible OLED fab to be built in Chongqing. The project is to cost ¥465b ($7.34b US) and will take 28 months to complete. The Chongqing Municipal Government is responsible for $2.5b and BOE is responsible for $1.6b, with the rest to be funded through ‘external financing’. According to the announcement, the company that will hold title to the fab is Chongqing BOE Display Technology Co. Ltd, an LLC created in July 2017, with BOE’s financial contribution giving it a 38.46% stake in the entity, and the Chongqing Municipal Government’s contribution owning the remaining 61.54%. BOE’s stake seems a bit small as the responsible party for the fabs construction and operation. The Chongqing Municipal Government created a partnership known as the Chongqing Liangjiang New District Chengxin Enterprise Management LP, which is made up of Directors from the Chongqing Strategic Emerging Industry Equity Fund LP (Established May 2015), the Chongqing Yufu Capital Equity Fund Management, the Chongqing Xinjiang New District Chenxing Enterprise Management Partnership LP (Established 2016), and the Chongqing Chengyun No.1 Enterprise Management Co., Ltd, which itself is made up from directors from Chongqing Liangjiang New Area Strategic Emerging Industry Equity Investment Fund Partnership, which is run by the Chongqing Yuzi Optoelectronics Industry Investment Co., Ltd, which is owned by Haozi Opto-electronics, which is owned by Chongqing Haozi Optoelectronics Industry Investment Co., Ltd, whose main shareholder is Chongqing Yufu Asset Management and Management Group Co., Ltd. (57.1%), which is controlled by (trumpets…) the Chongqing Municipal State-owned Assets Supervision and Administration Committee.
Addendum – BOE filed a 5-year agreement with the Industrial & Commercial Bank of China to provide financing for BOE’s current and future projects. While the ICBC (the largest bank in the world by assets) is a public company, the top two investors are the Government of China (46.3%) and the China Investment Fund (46.8%), which manages the currency reserves of…the People’s Republic of China.