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AVIC Funds Next Phase of Tianma’s 6th Gen Flexible Fab  
June 11, 2018

AVIC International Holdings the parent of Tianma Microelectronics announced that Tianma Micro’s holding company has forwarded $1.3b to the Wuhan project to begin the process for building out the 2nd phase of the company’s Gen 6 flexible OLED fab, with the remaining $936m for the project to come from bank loans.  The phase 2 project is stated to be 22,500 sheets/month, which is larger than the 15,000 sheets/month, and will push the total for the Wuhan fab from 30,000 sheets/month to 37,500 sheets/month, 25% higher than expected. While the project is stated at 24 months to completion, the initial construction and outfitting will be completed a bit more quickly and the time to reasonable utilization rates and product yields will be better than the phase 1 project, which is just getting ready to for MP.  Using a 20 Phase 2 production should begin starting in late 1Q 2020.  While the larger capacity of the fab on completion would go toward what has the potential to be a somewhat oversupplied market for small panel flexible OLED, the date push-out will help to increase demand as more smartphone brands migrate toward flexible substrates over time.

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