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Visionox to Build a 3rd Flexible Gen6 OLED Fab
August 19, 2019
 
Visionox signed a ‘Project Investment Agreement Proposal’ with the People’s Government of Guangzhou to build a G6 flexible OLED plant in the district of Zengcheng.  While the specific details are sparse as this is still a proposal, the expected cost of the facility is 11.2b yuan ($1.59b US), with the newly formed company having a registered capital of 5.6b yuan.  Based on the contribution to the project (initial), the government will own 82.4% while Visionox will own 17.9%, but additional contributions toward the project could change those percentages. The land has yet to be acquired by the company, and while the participation by the local government should keep the bureaucracy to a minimum, various site and construction approvals will also be needed, the announcement indicated that this was an ‘initial cooperation intention’, which means further details will have to be worked out before a final agreement is signed.  Visionox’s capital investment is $142m, but the $1.6b projected project cost is far below what would be needed to build a Gen 6 flexible OLED fab of any consequence.  Visionox is currently running a Gen 6 OLED fab in Hebei, which cost ‾$4.5b and has proposed a second flexible OLED fab in Hefei, which will cost $6.35b US (Gen 6 30K).