Huachan Optoelectronics will become a subsidiary of BOE
Hucan Optoelectronics to BOE directional issuance, after completion will become a subsidiary of BOE, BOE to complete the display field of the whole industrial chain step
Huachan Optoelectronics announced that it intends to issue 372 million shares to BOE to raise 2.084 billion RMB for the “Micro LED wafer manufacturing and packaging test base project” and to supplement working capital. After the completion of the project, BOE will hold 23.08% of the shares of Huachan Optoelectronics and control 26.6% of the voting rights. Huashi will hold 19.13 per cent of the listed company and control 19.13 per cent of voting rights. The controlling shareholder of Huachan Opto-Electronics will be changed from Huachan Opto-Electronics Holdings to BOE, and Huachan Opto-Electronics will become a subsidiary of BOE, which further aims at the whole industrial chain in the field of display devices.
Huachan Optoelectronics is a supplier of LED chips and advanced semiconductor solutions. Currently, its main products are applied to TFT-LCD and LED lighting fields, and mini LED and micro LED products are being actively laid out. BOE was introduced as the controlling shareholder to jointly expand the cutting-edge technology and products of Mini/Micro LED.
As a new display technology, Mini/Micro LED
has gradually become an important technology development direction in the field
of backlight and display, which has been exploded in commercial display markets
such as car, laptop, education, shopping malls and cinemas. In 2022, the total
shipment of the pen panel will reach 300 million pieces, among which the Mini
LED pen panel is expected to account for 9.9 million pieces, with a penetration
rate of about 3%, setting a new high in shipments and market share. In 2025,
the shipment of Mini LED backlit TVS is expected to reach 25 million units,
accounting for about 10% of the entire TV market. In addition, Mini LED backlight
technology has been on the Nextev ET7, Cadillac LYRIQ, Ideal L9 and other
models, the on-board display market may further open up the growth space for
Mini LED backlight.
The project will build a Micro LED wafer manufacturing and packaging test base in Zhuhai. The products of the project are Micro LED wafers and pixel devices, which are mainly used in large commercial displays, AR/VR headset display devices, wearable devices and other applications. The project is expected to be put into production in 2026. TrendForce forecasts that the output value of the global Micro LED display market will reach $3.391 billion in 2026, and the compound growth rate from 2021 to 2026 will reach 173.89%, showing a rapid growth trend. The combination of BOE and Huachan Optoelectronics will play a bigger role.
