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Company News >> Accelerate the AMOLED market TCL Huaxing "expansion + technology" two-wheel drive 19th,July,2023
                                              Under the influence of the new coronavirus epidemic, the global smartphone market shipments are expected to decrease significantly, but the market penetration rate of AMOLED panels may rise this year. To this end, TCL Huaxing accelerated its offensive in the AMOLED panel market.

At present, the second and third phases of TCL Huaxing's 6-generation flexible AMOLED production line (referred to as t4 project) are in full gear to expand production capacity and launch a "siege" war in order to seize the AMOLED market faster. At the same time, TCL Huaxing accelerated technological innovation and launched a "strategic" war with technological iteration in order to better manage the AMOLED market.

Launch a "siege" war to expand production and seize the AMOLED market faster

Omdia's latest data shows that global smartphone AMOLED panel shipments are expected to grow from 471 million pieces in 2019 to 513 million pieces in 2020, which means that the market penetration of AMOLED panels will be further improved.

Faced with this rare market opportunity, TCL Huaxing accelerated the development of new production capacity. Not long ago, Li Dongsheng, chairman of TCL Technology (000100.SZ), said in an interview with the media that the second and third phases of the t4 project are in full gear and entering the factory renovation stage. The main equipment of the second phase project is expected to be installed in July, and the equipment of the third phase project can be shipped and installed by the end of the year. In the second half of next year, Wuhan Huaxing t4 project will fully reach production, and it is expected that by 2021 it will have 45K production capacity. According to media reports, TCL Technology's additional investment in the t4 project will increase the investment of 35 billion yuan to 39 billion yuan.

TCL Huaxing has made full preparations for the new AMOLED production capacity. Recently, TCL Huaxing has signed an OLED technology license agreement and a material purchase agreement with Huaxing Display Co., LTD., which will provide Huaxing Optoelectronics with phosphorescent OLED materials for its display products.

At the same time, TCL Huaxing also accelerated the production capacity of the first phase of t4 project. Since the completion of the first phase of the t4 project, TCL Huaxing has regarded increasing production capacity as the first goal. At the beginning of last year, after the t4 production line was lit up and put into operation, the production capacity and yield climb exceeded expectations, and in less than a year, the product was completed from lighting to the volume of output goods to customers, creating an industry record. The t4 production line reached mass production at the end of last year.

In February, when the epidemic was the most severe this year, TCL Huaxing took strict prevention and control measures to continuously ensure the safe production of t4 production line and ensure that the t4 production line climbed as planned. In order to further accelerate the production rate of the first phase of the t4 project, on March 30, five days after the unlockup in Wuhan, a total of 403 engineers and technicians from Shenzhen Huaxing, Huizhou Huaxing and Huaxian Optoelectronics immediately went to Wuhan to station the production line of the t4 project, and these technical backbone selected by TCL Huaxing in various parts of the country are responsible for solving the employment problem of Wuhan Huaxing. Ensure that the t4 project can complete the important task of capacity scaling as planned. At present, the t4 production line has gradually gotten rid of the impact of the epidemic and resumed normal production and operation, and the production capacity in April exceeded the expected target.

TCL Technology predicts that by 2023, TCL Huaxing's small and medium-sized shipment area will have a five-year compound growth rate (CAGR) of 26%. TCL Huaxing expanded AMOLED production capacity in order to occupy the market faster. It is reported that after the t4 production line is fully full, it can achieve an annual output of 1.16 million square meters of AMOLED panels, which can meet 5% of the global demand for AMOLED smartphone panels.

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