Chinese company BOE recently announced a plan to acquire stakes in two flat panel production facilities owned by another Chinese company – CEC Panda. These are 80.831% of the Gen 8.5 factory in Nanjing and 51% of the Chengdu factory. According to the source, preparations for the deal are in the final stages.
After commissioning this year’s B17 (Gen 10.5) line, BOE has approximately 21.1% of the world’s large panel production capacity. On the other hand, the above CEC Panda factories together account for about 4.7% of global production. Thus, if the acquisition takes place, BOE will own about a quarter of the world production of large-size panels. Moreover, it is expected that in 2021 the share of BOE will increase to 28%.
According to TrendForce, BOE is a leader in supply categories such as panels for TVs, monitors and notebooks. Based on the transaction, BOE’s share in the TV panel market is expected to increase from 18.5% to 23.3%, in the monitor panel market from 27% to 31.7%, and in the laptop panel market from 27.3% to 31.5%.
With BOE focusing on IPS TV panels and CEC Panda focusing on VA panels, the deal will expand BOE’s product range and strengthen partnerships with leading customers. As far as notebook displays are concerned, both companies have focused on IPS panels, but BOE mostly uses a-si technology and CEC Panda uses IGZO, so the acquisition, again, will make BOE’s offer more diverse and give the company the opportunity to strengthen itself in the segment of panels with low power consumption.