The main reason that hampers the increase in output is the lack of key components.
BOE Technology’s efforts to scale up production of its 10.5 G panel flat panel production line in Wuhan have been undermined by a coronavirus outbreak. According to a source, the company’s goal to bring the company to full capacity by February next year is at risk.
The factory began operating in November 2019. This is the second BOE factory designed for 10.5G substrates. She focuses on the release of 65- and 75-inch LCD panels for TVs.
The BOE plan called for increasing output from 30,000 substrates per month in the first phase to 90,000 substrates per month by the end of 2020. It was planned to reach full capacity of 120,000 substrates per month in February 2021.
Alas, the factory is now operating at low speeds, processing only 10,000–20,000 substrates per month. Industry sources fear that this will undermine the company’s ability to fulfill orders with shipment dates in the second and third quarters.
The main reason that hampers the increase in output is the lack of key components. According to Digitimes Research, the majority of panel manufacturers have stocks of components for only 4-6 weeks of operation, and a significant part of replenishment orders are not currently running.