China LCD maker struggles to survive
SHANGHAI � China's largest TFT-LCD maker, Beijing BOE Optoelectronics Technology Ltd. (BOE OT),
is dumping most of its interest in large-sized TFT-LCD panels after failing to make it profitable.
Instead, the company will focus on small-sized panels for mobile phones and other portable
applications, such as notebook PCs and tablet PC modules. BOE OT will sell a 73 percent stake of
the troubled unit to an affiliate, which will help it avoid a delisting on the Shenzhen stock market.
BOE OT lost $155 million in its 5G TFT-LCD business last year. Dongsheng Wang, CEO of BOE OT, said
the shortage of funds, high costs of imported material, and lower product prices caused the decline
of its 5G TFT-LCD business during the past two years.
"Mid- and small-size TFT-LCD business has larger developent potential and it will become the company's
core business in the future," said Wang, in a statement. The company plans to enlarge its mobile and
portible display business to roughly $260 million during the next two to three years. It is currently
$52 million.
BOE OT began mass production on its 5G line in 2005. The company is currently producing 80,000 glass
sheets per month. Each sheet is 1100mm x 1300mm.
The company said the transfer won't interfere with a merger planned for June with two other local
TFT-LCD makers. The merged company will together operate six legacy LCD lines with a combined capacity
of about 200,000 panels per month. Production will focus on 15-, 17- and 19-inch panels, suitable only
for commodity notebook PCs and monitors.
The Chinese government is targeting the LCD industry for major growth, hoping to see a handful of
fifth-generation LCD production built lines by 2008, with additional sixth- and seventh-generation lines
slated for 2010. Currently, China is home to two operational fifth-generation fabs and another that will
come online soon.
Cai Yan
EE Times
(03/30/2007) |
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