Recently, BOE started construction of the 6th generation of new semiconductor display device production line in the economic development District of Beijing, and realized the "land can be started". With an investment of 29 billion yuan, the project plans to produce high-end display products such as VR display panels and Mini LED direct display backboards, which will help BOE increase the layout of high value-added and innovative display applications.

The reporter has learned that BOE issued the Announcement on Investment in the Construction of the 6th Generation of New semiconductor Display Device Production Line Project at the end of October 2022, which intends to invest 29 billion yuan in the construction of the 6th generation of new semiconductor display device production line project using LTPO (low temperature polycrystalline oxide) technology in Beijing. It mainly produces high-end display products such as VR display panel and Mini LED direct display backplane, with a designed production capacity of 50 thousand pieces per month. The project is expected to be mass-produced in 2025 and reach production in 2026.



Now the project on the day of the land delisting has been approved and the project construction preparation letter. Boe official said: "On the day of delisting got the approval of the project and construction preparation letter, greatly shorten the construction preparation period, reduce the cost of enterprises, promote the early realization of production."



In 2022, affected by the decline in end-consumption demand, it shows the imbalance between product supply and demand, indicating that the performance of manufacturers is under pressure. Recently, the construction of the middle line of the industry is more cautious. Boe recently in response to investor questions pointed out that the company has no plans to build a new LCD production line, the announced project is currently on schedule.



Although the performance in 2022 is under pressure, the business expansion of the panel factory is remarkable. It has become a consensus to dig deep into market segments, optimize and adjust the production line and product structure, strengthen the panel layout in high-value fields, and improve the ability to diversify business.



Boe pointed out in the 2022 performance forecast that in 2022, the company will focus on the optimization and adjustment of production line and product structure, in the LCD side of the car, esports, AR/VR and other high-value areas, to improve the overall profitability; In terms of OLED, we will significantly increase product shipments, increase the proportion of high-end products shipped, achieve breakthroughs in the mass production of innovative products such as vehicle-mounted and foldable laptops, and accelerate the continuous improvement of our business.



The high-end display products such as VR display and Mini LED direct display backboard are high value-added and innovative applications. According to Group-Intelligence research, shipments of Mini LED backlit TVS will increase from 3.2 million units in 2022 to 3.8 million units in 2023, and shipments of XR headsets will increase from 10 million units in 2022 to 13.7 million units in 2023, providing vast demand for VR and Mini LED display panels.