Caihong Display Devices plans to spend CNY2.3 billion (USD348 million) expanding its capacity to make liquid crystal display panels, an investment the Chinese manufacturer expects to generate an extra CNY2.1 billion in operating income each year.
The investment will complete Caihong’s aim of expanding capacity to 170,000 panels a month from 132,000 at the plant at its Xianyang base in China’s northwestern province of Shaanxi, the company said in a statement.
Caihong, whose customers include smartphone makers Samsung and Xiaomi, is experienced at enlarging output capacity, with its 8.6-generation production line forThin Film Transistor-Liquid Crystal Displaypanelshaving come onstream at the end of 2017, the firm added.
As the current mainstream technology for flat panel display devices, TFT-LCD is widely used in electronic products. The total area of TFT-LCD panels sold worldwide rose to 214 million square meters in 2019 from 162 million sqm in 2014, and is set to grow to 255 million sqm by 2024, Caihong said, citing a report by Chinese market researcher Cinno Research.
Founded in 1992, Caihong was the first maker of TV color picture tubes in China. With the continuous upgrading of display panel technology, Caihong has transformed into an LCD panel producer in recent years, offering TFT-LCD andActive Matrix Organic Light Emitting Diodes, orAMOLED, products.
Shares in Caihong Display Devices [SHA: 600707] fell almost 0.5 percent today to end the week at CNY4.23 (64 US cents) each. The company has a market capitalization of CNY15.2 billion (USD2.3 billion).