3 billion years of money-burning will soon pass

With the upcoming mass production of 6-generation LCD panel lines and the capping of the 8.5-generation line main plant, Chen Yanshun, executive director of BOE, seems to be able to relax. At least, 3 billion yuan will be spent on building or expanding 4 LCD panel production lines in 3 years. The "crazy" period is finally coming.

“Entering the LCD industry is doomed to be unsteady. BOE’s growth for the past seven years has been both bittersweet and hot.” ​​Chen Yanshun said in a media interview yesterday.

Investment construction!

BOE has been sceptical about the market for some time, that is to say, it has been due to the huge amount of money-laden behavior it has spent in recent years.

According to Sina science and technology, at present, apart from having a 4.5 generation line (Chengdu), a 5th generation line (Beijing) and a 6th generation line (Hefei), BOE has a 8.5 generation line (Beijing) under construction. Among them, three lines were built in the past three years. In addition, the national engineering laboratory project for TFT-LCD process technology was also built in the near future.

The earliest Beijing 5th-generation line of BOE was built in September 2003, with an investment of US$1.25 billion. In recent years, BOE has undoubtedly accelerated the pace of investment.

In March 2008, the 4.5-generation line in Chengdu was started. The total investment before and after the project was 3.4 billion yuan. In April 2009, the 6th-generation line in Hefei was started with a total investment of 17.5 billion yuan. In April 2009, the National Engineering Laboratory for TFT-LCD Process Technology and The cornerstone of the BOE R&D building was a total investment of approximately 180 million yuan. In August 2009, the official foundation of the Beijing 8.5-generation line laid a foundation for an investment of 28 billion yuan.

"In the three years, 4 lines have invested 50 billion yuan, and a civilian product company has invested so heavily, which is really not available in domestic history." Chen Yanshun admits. According to its introduction, these investments are mostly from the government and bank loans.

Production line layout

"To tell the truth, we haven't made any money yet. The original investment hasn't paid off yet." Yanyan Chen said. "But the investment period is almost over. The most difficult period in BOE is over."

It is reported that the 6th-generation Hefei Hefei line has now entered the equipment installation and commissioning stage. It will light up the first screen in early September of this year and realize mass production in October. On July 31st, BOE’s 8.5-generation line will be successfully capped. It is planned for 2011. Light up the first screen in the month and realize mass production in September.

With four production lines successively mass-produced, BOE has a relatively complete product line in the LCD screen industry.

According to Chen Yanshun, currently, BOE's approximately 17-size products are mainly concentrated in its fifth-generation line, with a monthly production capacity of approximately 100,000 glass substrates. After all four production lines are mass-produced in the future, the production line can be more rationally laid out. For example, products below 7 inches are mainly concentrated in 4.5 generation lines, 7 inches to 16 inches are concentrated in 5th generation lines, 18 inches to 30 inches are concentrated in 6th generation lines, and 32 inches to 55 inches are concentrated in 8.5 generation lines.

The reasonable layout of the production line can save costs. Taking a 32-inch LCD screen as an example, the glass substrate of the 5th generation line can only cut out 3 screens, the utilization rate is only 60%, and the 6th generation line can be increased to 88%. The 8th generation line It can be increased by 3%.

Improve the upstream and downstream chains

In addition, BOE is also laying a complete upstream and downstream industrial chain. At present, the Beijing Municipal Government has designated 6 square kilometers of land to set up industrial parks around the 8.5-generation line, and has already introduced 25 upstream and downstream manufacturers, such as Corning, etc. Upstream material manufacturers have invested 800 million U.S. dollars in Beijing, as the downstream TPV will also establish an annual production base of 8 million LCD TVs.

“In this industrial park, the basic raw materials go in. The direct TV is a complete TV.” said BOE spokesman Zhang Yu. “This kind of integrated design can save a lot of cost. For example, a 32-inch TV with integrated design Can save 140 yuan in cost."

After intensive investment in BOE, many domestic and foreign companies are also flooding into the domestic market. On January 16 this year, the 8.5-generation line of Huaxing Optoelectronics, a joint venture between TCL Corporation and Shenchao Investment, invested 24.5 billion yuan. Samsung, LG, Sharp, Chi Mei, AUO and other giants of high-generation LCD panel projects are also actively applying for. "Five countries in four places and five tigers," the pattern has been formed, Chen Yan Shun is holding "the key to victory in the mainland."