Beijing, China-based BOE Optoelectronics Technology Ltd (BOE OT) is China’s largest LCD manufacturer, but is unprofitable. BOE OT will cut its losses in large-area panels and instead focus on smaller-sized LCDs geared for mobile phones, notebook PCs, tablet PCs and other portable products. BOE OT will sell a 73% stake of the troubled unit to an affiliate, and avoid a delisting on the Shenzhen stock market.
BOE OT lost US$155 million in its LCD business last year that is composed of a single G5 LCD fab. Dongsheng Wang, CEO of BOE OT, blamed fund shortages, high costs of imported material, and fast-declining product prices for the company’s troubles and inability to generate profits. The company plans to build its mobile and portable display business to US$260 million in 2-3 years, from just US$52 million today. The company is currently running 80,000 glass sheets per month with a dimension of 1,100 x 1,300mm.
The company said the transfer won’t interfere with a merger planned for June with two other local TFT-LCD manufacturers, SVA-NEC and Infovision Optronics. The merged company will operate six legacy LCD lines with a combined capacity of about 200,000 panels per month. Production will focus on 15″, 17″ and 19″ LCDs that are geared toward notebook PCs and LCD monitors.
Source: EETimes Asia
[tags]BOE OT, SVA-NEC, InfoVision Optronics, IVO, Tablet PC, Notebook PC, Mobile Phone[/tags]