BOE Opposes Hefei Government’s Withdrawal from B9 Stake… Sensitive to Potential Fund Shift to Visionox

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BOE's OLED Panel Production Complex (Source: BOE)

BOE’s OLED Panel Production Complex (Source: BOE)

Concerns Rise That B9 Funds May Be Diverted to Visionox’s FMM-Based Line Following ViP Investments

BOE is strongly opposing the Hefei local government’s move to withdraw its stake in the B9 OLED plant. The Hefei government is reportedly seeking to divest its shares worth around 20 billion yuan, and there are growing concerns that the funds could be redirected to Visionox’s V5 line—a direct competitor. BOE is closely monitoring the direction of this potential fund reallocation.

Currently, Visionox is investing in a 7.5K production capacity line at the V5 plant, implementing its proprietary ViP (Visionox intelligent Pixelization) technology. Visionox initially planned to build a 15K production capacity line using a ViP + FMM (Fine Metal Mask) hybrid method. However, due to financial constraints, the FMM portion of the investment was put on hold. If the capital withdrawn from B9 is allocated to Visionox, the company could not only complete the ViP line but also proceed with the additional 7.5K FMM-based investment. This would pose a direct long-term threat to BOE’s market share and competitiveness.

For this reason, BOE is opposing the Hefei government’s withdrawal and aims to maintain its leadership in OLED investments in the Hefei region. BOE is also internally reviewing plans to reinvest the B9 equity into new production lines or expand existing ones. Meanwhile, the Hefei municipal government is reportedly considering new investment strategies to restructure the region’s display industry.

This issue of divestment and fund reallocation by the Hefei government signals more than just a financial adjustment—it indicates a potential realignment of technology, capital, and production capabilities within China’s OLED industry. The rivalry between BOE and Visionox is expected to intensify, possibly escalating into a broader strategic competition for OLED market leadership.

Junho Kim, Analyst at UBI Research (alertriot@ubiresearch.com)

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