It is reported that Huike Mianyang H7 plans to build LCD production capacity first

On May 18, according to Korean media reports, Huike HKC is using the land near the H4 factory in Mianyang City, Sichuan Province to build an H7 display panel production line. The project aims to maintain the LCD business while adding OLED products to expand the product portfolio.

According to sources, the H7 project will be invested in two phases. The first stage is to introduce second-hand equipment from Japan's JDI and establish a sixth-generation LCD production line. This move aims to expand the company's LCD production capacity, reduce the initial investment burden, and lay an equipment foundation for the subsequent construction of OLED production lines. In the second phase, Huike plans to build an OLED production line in H7 with a monthly production capacity of 22,500 substrates. The company is evaluating the traditional FMM (high-precision metal mask) technology path or non-FMM solution for H7 OLED. Comparing the two, non-FMM is more difficult but also easier to attract external financial support.

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The FMM-free process is a process that does not use a high-precision metal mask, but forms RGB pixels through patterning processes such as photolithography. Because it can reduce the limitations of high-resolution patterning, it has attracted much attention as a technology for IT OLED and next-generation large-size OLED. Visionox is taking the lead in developing layout in this field, and its 8.6-generation OLED production line using FMM mask-free ViP technology is under construction.

Industry insiders pointed out that after accumulating rich OLED production experience in the 5.5-generation production line (H6) and the 6-generation production line (H7), Huike may consider investing in the 8.6-generation OLED production line in the medium and long term. It is reported that the 8.6-generation line plays a key role in the expansion of OLED in the IT market. Large-size panel manufacturers such as Samsung Display, BOE and Visionox have already invested in this field.

According to reports, Huike’s additional investment is uncertain. The reason is that China's OLED market has begun to intensify price competition, and some companies are facing financial pressure due to large-scale OLED investment. Among them, investment in the 8.6-generation ITOLED production line is centered on major panel companies. If latecomers want to enter this field, they need clear technological differentiation and stable financing. (Source: UBI Research)

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