The U.S. initiates 337 investigations on AMOLED display equipment and its components, but has no impact on BOE

BOE stated that the US Section 337 investigation will not have a substantial impact on production and operations. BOE (000725.SH) announced at noon on January 29 that the US International Trade Commission has initiated 337 investigations on specific active matrix OLED (ie AMOLED) display devices and their components, which will not have a substantial impact on BOE’s production and operations.

As of 1:58 pm on January 29, BOE's stock price fell 4.23% to 6.11 yuan per share.

In this 337 investigation, the Irish Solas OLED Ltd. filed an application with the U.S. International Trade Commission, accusing BOE, its subsidiaries, and many other companies in the display field of exporting, importing or selling specific active matrix OLED displays in the United States. The equipment and its components infringed on patent rights, and a 337 investigation was requested and a limited exclusion order and a prohibition order were issued.

At present, BOE has learned that the US International Trade Commission has issued a notice to initiate an investigation on this case. This notice is the normal rule and procedure of the 337 investigation, and BOE will follow the 337 investigation procedure. After verification, Solas OLED Ltd. currently claims 2 US patents for specific active matrix OLED products of BOE, involving array substrate and driving circuit technology.

BOE said that it has mastered the core key technologies in the OLED field and has independent intellectual property rights. After learning of this incident, Jingdong has set up a special working group to actively respond to the 337 investigation. According to preliminary judgment, the 337 investigation will not have a substantial impact on BOE’s current production and operations. BOE will actively communicate and negotiate with related parties and resolutely safeguard the legitimate rights and interests of the company and all shareholders.

BOE is already one of the world's largest LCD panel manufacturers, and its OLED panel business is also growing rapidly. At present, the four 6-generation flexible AMOLED panel production lines that BOE has built, are under construction, and are planning are in Chongqing, Mianyang, Chengdu and Fuzhou. BOE said that AMOLED flexible display products have gradually become an important choice for high-end smart phones, vehicles, and foldable notebook computer displays.

At present, Samsung is the world's largest supplier of small and medium-sized AMOLED panels. The 337 investigation also involves Samsung. BOE is the world's second largest supplier of AMOLED smart phone screens. According to data from Qunzhi Consulting, in the first three quarters of 2020, BOE's market share of global AMOLED smartphone panel shipments was 9.7%, second only to Samsung's 72.3%.

In 2020, BOE entered the Apple iPhone supply chain for the first time, becoming a new supplier of flexible AMOLED screens for iPhones following South Korea’s Samsung and LGD. However, Chen Jun, deputy general manager and chief analyst of Qunzhi Consulting, told China Business News reporters in January this year that China's flexible AMOLED panel suppliers such as BOE are currently mainly catering to the domestic market and not many overseas markets.