BOE Formally Announces B16 G8.7 IT OLED Fab
BOE formally announced its G8.7 IT OLED fab known as B16 last week after receiving government approval. The fab will be based in Chengdu, with ownership split 53% for BOE and 47% for the Chengdu provincial government. The glass substrate size will be 2290mm x 2620mm, which we refer to as G8.7. The capacity will be 32K substrates per month and the build-out is projected to take 34 months. BOE announced the total capex at $8.8B for this project. It is expected to have an LTPO backplane rather than a high mobility oxide backplane, which SDC and LGD are pursuing which may make multi-sourcing between BOE and SDC/LGD problematic. Equipment spending is also expected to be higher for LTPO vs. high mobility oxide as quantified in DSCC’s Quarterly Display Capex and Equipment Market Share Report. That report also projects the timing for B16’s POs with the first phase most recently projected for March of 2024 with delivery by the middle of 2025 and production by the end of 2026. We don’t believe BOE has yet decided who its fine metal mask vacuum thermal evaporation (FMM VTE) supplier will be with Tokki the expected winner, but tool cost a major concern.