BOE will expand the production of OLED panels to meet demand from Apple and other international customers while seeking to narrow the gap with South Korean rivals.
According to the latest report, BOE said that it plans to increase the delivery of OLED panels by nearly 70% this year. Its two production lines in Chengdu and Mianyang, Sichuan are expected to run at full capacity this fiscal year.
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The third production line in Chongqing is in full production. These increases will boost OLED production from 60 million units in 2021 to 100 million units this year. The Chongqing production line is testing panel quality with top smartphone and tablet manufacturers. The Sichuan factory is already supplying Apple, and BOE apparently hopes that the Chongqing factory will also supply Apple with panels.
Moreover, BOE is also considering building a new OLED factory in Chengdu, saying it is based on “assessing the strategy, market, technology, and financial situation”. The new factory is scheduled to come online by the end of 2024, but capacity has not been announced.
Although BOE currently occupies the world’s largest share in the LCD panel field, surpassing its Korean competitors, in the field of OLED panels, South Korea’s Samsung Electronics and LG Display are still in a leading position. The launch of the Chongqing factory and the construction of the new Chengdu factory will allow BOE to get closer to its competitors.
Sales outside of China will largely impact this situation. Sales in Asia excluding China increased by 75% to 96.1 billion yuan (RMB), making it the largest market. Sales in the Americas rose 2.3-fold to $23.7 billion, while sales in Europe rose 14 percent to $5.4 billion.
