Valley steps up screen production
Optics Valley has become a strong production base for high-end electronic screens, an industry expected to grow rapidly in the near future, according to a top executive of the largest electronic screen production base in the valley.
Shenzhen China Star Optoelectronics Technology Co Ltd built its first production line for sixth-generation low-temperature polysilicon screens for medium and small highend smartphones and tablets in 2015, with investment of 16 billion yuan ($2.4 billion). It is the largest project invested in by a single company in Wuhan.
The production base, once it goes into full operation in 2017, is designed to be able to produce 88 million screens every year, at a value of more than 10 billion yuan.
China is the largest consumer of electronic screen products yet 70 percent of such screens in the country are imported.
Li Dongsheng, chairman of TCL, the holding company of China Star Optoelectronics, said the establishment of the production base in Optics Valley would cut into the monopoly of overseas companies in high-end smartphone screens.
“CSOT screens have high definition, speed and brightness. Not only do they protect the users’ eyes but also lengthen standby time,” said Ding Tao, director of the general manager’s office of CSOT.
According to Ding, China’s cellphone renewal is faster than overseas countries. There’s a great need for cellphone screens with higher sensitivity to touch and finger print recognition accuracy.
The company is also doing research in AMOLED, a soft seamless cellphone screen that Xu Jianxiao, board secretary of can be folded like a newspaper.
“This innovation, if successful, will generate immeasurable market share and profits,” said Ding, “By then, the profits contributed by the production base in Shenzhen are going to exceed China Star Optoelectronics’ other two bases in Shenzhen.”
According to Ding, CSOT had several options when seeking the location for our third factory. Wuhan stands out because its government offers a lot of support for the electronics industry.
“In Optics Valley, a production chain has formed for cellphone production. A lot of downstream companies have set up factories here. Moreover, Wuhan has the highest concentration of university talents, which is another factor that appeals to us,” said Ding.
Tianma Micro-electronics Co Ltd, a Shenzhen-based company that moved to Wuhan in 2008, invested 12 billion yuan in LTPS production base in Optics Valley in Wuhan in March 2015. The company has other production bases in Shenzhen, Shanghai, Chengdu and Xiamen.
“Wuhan has noticeable geographical advantages because it is in the center of China with very convenient outreach to the rest of the country,” said Xu Jianxiao, board secretary of Tianma. “The government’s support policies and free investment environment have also added to the appeal of the city.”
When the two LTPS production bases have gone into operation, Optics Valley will see production of 60,000 medium and small-sized screens, and 160 million display module groups, supplying 440,000 sets of cellphones every day. It will become the largest medium and small-sized electronic screen production base in the world by output.
Statistics of Beijing-based Sigmaintell Consulting Co Ltd, a LCD product consulting company, show that full high definition screens account for 24 percent of smartphone screens.
The prices of 5.5 inch FHD screen have fallen to the level of five-inch FHD screen two years ago. The LTPS production lines will be a critical factor for the demand and supply balance of FHD.
The firm has estimated that the demand of LTPS products will slightly outstrip supply.
Tianma Contact the writers through yangziman@chinadaily. com.cn
Ding Tao, director of CSOT general manager’s office