SHENZHEN-BASED Tianma Microelectronics Co., a leading Chinese display panel manufacturer, will partner up with several companies to build an 8.6-generation display panel production line in the eastern coast city of Xiamen with an investment of 33 billion yuan (US$5.16 billion), the 21st Century Business Herald reported Wednesday.

Xiamen Tianma Microelectronics will form a joint venture with Xiamen ITG Holding Group Co. and two other Xiamen-based companies to produce the 8.6-generation a-Si and IGZO LCD panels, the report said, quoting its Shenzhen parent company.

The venture will have registered capital of 19.8 billion yuan and Xiamen Tianma will invest 2.97 billion yuan for a 15% stake. Xiamen ITG Holdings will invest 9 billion yuan for a 45.5% stake, with Xiamen MTR holding a 20.2% stake and Xiamen Jinyuan Group taking a 19.3% stake.

The new plant will have a monthly production capacity of 120,000 8.6-generation display panels targeted at the vehicle display market as well as the information technology (IT) equipment and industrial display market, the report said.

A number of manufacturers are expanding their display panel production to meet the demand as sales of personal computers and related products have surged for at-home workers and learners during the pandemic.

BOE Technology Group Co. is planning to set up an 8.6-generation OLED production line in Chengdu, which is expected to be put into operation in 2024, the report said. TCL is also investing to build two panel production lines, with one in Wuhan and the other in Guangzhou, it said.

Overseas companies including South Korea’s LG and Samsung Electronics are in the process of establishing 8.5-generation OLED production lines, the report said.

“We’re optimistic about the prospect of the display panel market,” Zhao Jun, chief operating officer of TCL Huaxing, was quoted as saying. “The pandemic is one of the factors behind the increasing demand, and the demand won’t start to ebb until two or three years later. Growth opportunities for the vehicle panel market will remain in place even longer.”

(Liu Minxia)