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The Bank of England is investing in Honor to strengthen ties

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A man walks past an Honor store in Shanghai, November 11, 2022. [Photo/VCG]

The deal is expected to boost competitiveness in China’s chip display industrial chain

Industry experts said Chinese display panel supplier BOE Technology Group Co Ltd has invested in Honor Device Co Ltd, a major domestic smartphone maker, a move that is expected to boost cooperation between the two sides and strengthen competitiveness in the country’s semiconductor display industrial chain. . .

According to Tianyancha, a Chinese corporate information provider, Honor recently completed a new round of strategic financing from six new investors such as BOE, China International Capital Corp. Qizhi (Shanghai) Equity Investment Center, Guosen Capital, and Shenzhen Baoan District Investment Group Group.

Honor said in a statement Thursday that the company is focusing on “diversification of the shareholding structure” and has “always adhered to the principle of openness and cooperation.” It is committed to cooperating with industry chain partners to promote product innovation and better serve global consumers.

As a leading player in the display sector in China, BOE has 16 semiconductor display production lines across the country and is the primary board supplier for smartphone manufacturers including Huawei, Xiaomi, Honor, Oppo and Vivo.

Chen Jun, deputy general manager and chief analyst of Sigmaintell Consulting, a Beijing-based market research firm, said that the BOE’s investment in Honor is conducive to establishing more stable cooperation between the two partners.

“Displays, especially organic light-emitting diodes or OLED screens, are the primary resource for peripheral makers, so BOE’s investment will ensure that Honor acquires its own OLED panel and strengthens its competitiveness amid fierce competition from domestic competitors,” Chen said.

At the same time, BOE will obtain more stable shipment channels and customer resources, as well as expand its presence in the smartphone supply chain.

Data from Sigmaintell Consulting shows that the BOE topped the domestic market with shipments of flexible OLED panels of about 60 million units in 2021, up nearly 60 percent year-on-year, making it the second largest OLED maker in the world after South Korea’s Samsung.

said Zhou Hua, senior analyst at CINNO Research, a Chinese flat panel consulting firm.

“For Honor, it is important to have a stable and reliable source of displays as the company ramps up efforts to expand its presence in the smartphone market,” Zhou added. Linkages between panel suppliers and peripheral makers are common in the early stages of the OLED industry.

Smartphone shipments in China fell 11 percent year-on-year to 70 million units in the third quarter, according to global market research firm Canalys.

Domestic smartphone maker Vivo took the lead with shipments of 14.1 million units in the July-September period, accounting for 20 percent of the market share, while Honor ranked third with shipments of 12 million units of smartphones, capturing 17 percent of the market share. . .

Market research firm Omdia said that global shipments of OLED panels for smartphones will reach 812 million units in 2022, an increase of 38.8 percent compared to 585 million units in 2021.

In terms of OLED supplies, Samsung Display is expected to remain the market player next year, but its market share is expected to shrink as its dominant position is challenged as Chinese panel manufacturers enter the small and medium-sized OLED market, Omdia said.