In a recent interview, Wang Dongsheng, chairman of BOE, one of China's leading LCD panel manufacturers, revealed that the company is considering providing financial support to Japan Display Inc (JDI) as it works on its operational restructuring. The cost of setting up mass production for OLED panels used in smartphones is estimated at 200 billion yen. JDI is currently seeking potential partners and investors, and BOE has emerged as one of the most likely candidates.
According to sources, JDI aims to finalize its reconstruction plan by the end of March 2018 by partnering with several companies. As a state-owned enterprise in China, BOE has benefited from strong government backing, allowing it to become a global leader in LCD technology. The company is also investing 1.6 trillion yen to build a new OLED plant in Chengdu, signaling its push into next-generation display technology.
JDI specializes in small-to-medium-sized low-temperature polysilicon (LTPS) panels and is a key supplier of iPhone screens for Apple. On the other hand, BOE focuses on OLED panels for mobile devices. While LTPS technology can be used in OLED backplanes, BOE doesn't necessarily need JDI’s large-scale LTPS production capacity — it may only seek access to JDI’s advanced LTPS technology.
If BOE acquires a stake in JDI, it could mirror the strategy of another Chinese panel maker, Tianma, which previously partnered with NEC in Japan to gain access to OLED technology. However, whether BOE should invest heavily in JDI’s production facilities remains uncertain. Currently, BOE lacks OLED expertise, and acquiring JDI’s technology could position it as the second major supplier of OLED panels for Apple, after South Korean manufacturers. This move would help BOE transition into a full-fledged panel manufacturer with a wide range of technologies, strengthening its global presence in the display industry.
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