China-based TFT-LCD panel maker BOE Technology will expand monthly capacity at its 8.5G production line in Chongqing, western China, from 90,000 glass substrates to 120,000 units, according to Digitimes Research.
The company will also begin to set up an 8.5G line in Fuzhou, southeastern China, in the first half of 2017 and a 10.5G line in Hefei, northern China, in the second half of 2018.
BOE's move comes as it aims to expand its influence in the panel industry and as subsidies from the China government are starting to decrease as it shifts focus to developing the local components segment.
BOE will have a 27% CAGR for its large-size panel capacity over the next 4-5 years compared to an average of 5% from other makers and is expected to hold a 10% global share in large-size TFT LCD capacity by 2017.
The company is also likely to surpass AU Optronics (AUO) in 2018-2019 in terms of large-size display capacity if its plan to unleash new capacity at its 10.5G fab over the period remains unchanged, said Digitimes Research.