Chinese display panel makers Tianma and CSOT are expected to resume spending and order equipment within the year, sources from South Korean equipment makers told TheElec.
This is thanks to Chinese President Xi Jinping’s being expected to secure a third term during the National Congress that will last until October 22, which will resolve the political uncertainty that clouded Chinese display panel makers, they said.
Tianma is likely to place orders for the second phase of its TM18 line as well as TM19 line within the year. CSOT is also expected to place orders for the second phase of its T9 line. Spending on these lines was already planned before.
Tianma’s TM18 is at Xiamen and is a Gen 6 flexible OLED line; phase one went into operation during the first quarter. The Chinese company is planning to spend US$6.8 billion for a maximum capacity of 48,000 substrates per month.
Meanwhile, TM19 is a Gen 8.6 liquid crystal display (LCD) line with US$5.2 billion earmarked for a capacity of 120,000 substrates per month. The line will manufacture panels for automobiles and IT products. Production is expected to start in late 2024.
CSOT’s T9 is also a Gen 8.6 LCD line located in Guangzhou. A total of US$5.4 billion will be spent for a capacity of 180,000 substrates per month.
The most uncertain timeline among Chinese panel makers is BOE’s Gen 8.7 OLED line, B16.
This is because the company will likely start spending in a similar timeline around Samsung Display and LG Display.
All three are suppliers to Apple and are likely to execute additional spending on their existing Gen 6 OLED lines first.