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BOE to Build 4th 6thGen Flexible OLED Fab in China
January 06, 2019
 
The Shenzhen Stock Exchange disclosure site reported that BOE signed an agreement with the government of Fuzhou City, Fujian Province, to build another Gen 6 flexible OLED fab.  The agreement is a framework, which usually precludes a more formal agreement, however it does specify that the fab will be located in Fuzhou City and will be designed to produce 48,000 Gen 6 sheets/month at a cost of 46.5b RMB  ($6.74b US), although it allows for an upgrade in the fab’s generational capabilities, should both parties agree that a Gen 8 or larger format would better serve the markets.The initial capital of 26b RMB (slightly over $2b US) will be split 56.5% and 43.5%, with the Fuzhou government paying the greater share, and there is a clause that seems to state that no other panel producer can be brought into the Fuzhou area for three years after the commencement of the project.  The framework, as such, still needs to be approved by the BOE BOD and shareholders, but if approved, would be the 4th Gen 6 OLED fab that BOE is either operating or has under construction, and would follow the company’s cookie cutter approach to OLED fab construction, a two phase 48,000 sheet/month Gen 6 format.As there is not timeframe expressed in the framework agreement, the timing is rather loose, but Q221, which is 2 quarters after BOE Chongqing OLED fab is scheduled to open, seems likely.