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BOE, ordering 6th generation B11 equipment ... Received orders from Korean companies such as AP system

Issued on: September 15, 2013

Chinese panel maker BOE has begun ordering 'B11' equipment for the second 6th generation flexible organic light emitting diode (OLED) production line in Yangyang. The company is expected to benefit from domestic equipment makers as it has a total production capacity of 46.5 billion yuan (about 7.9 trillion won). Samsung Display's investment in equipment is over, and most domestic equipment companies are looking for business opportunities in China.

According to the industry on the 13th, BOE recently selected some of the equipment order projects for B11, which is being built in Miyang, Sichuan Province, since last December. In June, we started ordering all major process equipments and gradually the ordering project is going to increase.

BOE's first publicly ordered equipment is laser crystallization (ELA) equipment. In June, we received orders for 6 projects, and at the end of August, the domestic AP system, the leading company in the field, won both projects. The down payment is 53.264 billion won. ELA equipment takes 10 months or more from manufacture to delivery.

The AP system also supplied ELA equipment to the Chengdu B7 line, which could produce both rigid and flexible OLEDs. Based on our experience in supplying equipment to Samsung Display, we are also able to supply our products to the BOE production line.

BOE already has Canon Toki equipment as an organic material evaporator for B11. As the product has already proven its mass production capability in the market, it has not widened its choice.

Since then, we have also received orders for high-concentration ion implanters, one of the key processes in the entire process. Nissin Ion Equipment has received an order from Japan. Recently, we have been ordering equipment such as systems necessary for the touch process. The company is also planning to start ordering major front-end equipment such as chemical vapor deposition (CVD) equipment.

BOE started mass production of flexible OLED in C7 B7 in May. The yield is not high yet, and production is said to be insignificant.

A BOE official said, "The BOE is struggling to raise the yield," he said. "The production site staff maintains a fairly high level of work intensity, focusing on increasing production and yield with no work weekends."

The BOE has been actively pursuing investments such as the B11 investment in haste, although it has not yet achieved good yields. The Chengdu B7 has a capacity of 45,000 sheets per month, and the Mianyang B11 has a capacity of 48,000 sheets per month. By securing a production capacity of 90,000 units by 2019, it will become the world's sixth largest manufacturer of flexible OLEDs.

LG Display aims to secure 65,000 sheets per month in Paju and Gumi by 2019. There is a possibility of additional investment, but it has not been confirmed yet. Actual output is different from production capacity depending on yield and utilization rate, but BOE has set a goal of increasing its production capacity to become a leading player connecting Samsung Display.

Baek Ok Jin display specialist reporter
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