BOE Ordos production line technical transformation plus MLED

Recently, the official website of the Ecological Environment Bureau of Ordos City released the "MLEDBP Equipment Renewal and Technical Transformation Project of Ordos City Yuansheng Optoelectronics Co., Ltd." announcement, which disclosed BOE's latest production capacity layout actions in the Mini/Micro LED field. It is reported that Ordos City Yuansheng Optoelectronics is a wholly-owned subsidiary of BOE Technology Group Co., Ltd. The core goal of this technological transformation is to add new production capacity of Mini/Micro LED display devices and further strengthen BOE's competitive advantage on the MLED track.

The project environmental impact assessment report shows that the total investment of the MLEDBP equipment update and technical transformation project reaches 185.95 million yuan, and the land area is about 1125 square meters. The process will be upgraded based on the existing LTPS TFT-LCD array process, adding via etching, Cu coating and Cu etching. After the completion of the project, a monthly investment of 6,000 new array glass substrates will be specially used to produce MLED display devices. It is worth noting that after the technical transformation, the total monthly glass substrate investment in the existing LTPS TFT-LCD array preparation process will remain unchanged at 68,000 pieces. The new MLED product production capacity will be achieved by reducing the output of LTPS TFT-LCD of the same scale., the original AM-oled production remains stable.

From the perspective of product attributes, the MLED products produced by this technological transformation project are intermediate products and will all be supplied to downstream suppliers and will not be directly put on the market as display terminal products. Therefore, the specific specifications, models and size of the products will be flexibly adjusted according to order needs, without fixed standards. Enterprise check information shows that Ordos City Yuansheng Optoelectronics was established in 2011 and registered at the equipment manufacturing base in Ordos City. It is 100% wholly-owned by BOE and is an important display device production base for BOE in the northern region.

Looking back at the history of this production line, it was originally planned to be the 5.5th generation AM-OLED organic light-emitting display device production line, which was constructed in two phases and has been accepted. After being put into production, the production line production capacity is mainly invested in LTPS LCD products, and only a small part is used for the production of AM-OLED products. Since 2021, BOE has implemented multiple renovations and expansions of this production line. This time, it further reduces LTPS production capacity and increases the manufacturing of Mini/Micro LED devices, which clearly conveys the company's strategic determination to focus on the MLED business and is also a reflection of the display industry. Proactive compliance with the trend of technology upgrades.

From a strategic perspective of the group, MLED business is one of the core lines in the development architecture of BOE's 1+4+N+ ecological chain. Among them, 1 is the core business of semiconductor display, 4 covers the four strategic directions of Internet of Things innovation, sensing, MLED and smart medical engineering, and N represents multiple Internet of Things segmented application scenarios. Financial data shows that the MLED business has become an important growth engine for BOE: in the first half of 2025, the business achieved revenue of approximately 4.347 billion yuan, accounting for 4.29% of total revenue; in the third quarter, revenue increased by more than 15% year-on-year, maintaining a rapid growth trend.

In terms of specific business progress, BOE MLED has achieved breakthroughs in both direct display and backlight areas. In terms of direct display, its Zhuhai chip base has taken the lead in achieving large-scale mass production of COG technology, and its production capacity is expected to increase to 10000 square meters/month by the end of 2025; in the backlight field, shipments in mainstream application scenarios such as e-sports, vehicle-mounted, and commercial displays Both volume and revenue have achieved simultaneous growth. After the completion of the technical transformation of the Ordos production line, BOE's MLED production capacity layout will be further improved, helping it increase market penetration in high-end commercial displays, vehicle-mounted displays and other segments, and consolidate its competitive advantages in the industry.