BOE and Feikai Materials establish new company

Currently, the focus of competition in the global display industry is accelerating from the expansion of downstream production capacity to the game between midstream and upstream core materials and underlying technologies. At the same time, the increasing demand for localization of the industrial chain and supply chain security has also pushed leading companies to accelerate investment and layout in the field of key materials. Against this background, BOE and Feikai Materials have recently further increased their display materials business through joint ventures, cooperation and production capacity expansion.

BOE and Okura Industries: Joint venture to establish optical film company

On March 24, Japan's Okura Industries Co., Ltd. (hereinafter referred to as "Okura Industries") announced that the company signed a contract with Beijing BOE Materials Technology Co., Ltd., a subsidiary of BOE, and decided to establish a joint venture in Hefei, Anhui Province, China. According to the announcement, the joint venture company has a registered capital of 600 million yuan, of which BOE contributes 66% and Okura Industrial contributes 34%. It is mainly engaged in the manufacturing and sales of polarizer optical films for displays.

Okura Industries pointed out that the establishment of a joint venture with BOE is to seize opportunities in the global display market that continues to grow rapidly and expand its business in the information electronics field. Through cooperation with BOE, we will expand sales of acrylic films for polarizing plate protection for large-size displays and retardation films for IPS viewing angle compensation, and establish market share.

It is understood that in the display field, Okura Industries focuses on optical film foundry services. Its products include acrylic films for polarizer protection, phase difference films, etc., which are mainly used in terminal displays such as LCD TVs, smartphones, and tablets.

In recent years, Okura Industrial has continued to increase its optical film business. The 2025 financial report shows that thanks to the increase in orders for optical films for large-size LCD TVs and the stable operation of the new factory, the company's new materials division has achieved substantial profit growth.

Through the establishment of a joint venture in Hefei, BOE has obtained the binding of Okura Industrial optical film production capacity with a 66% shareholding ratio. It can more stably obtain key materials such as acrylic film for polarizer protection and phase difference film for IPS viewing angle compensation, and improve the risk resistance of the supply chain.

Feikai Materials: Established a wholly-owned subsidiary in Chizhou

At the same time, Feikai Materials, a major domestic display materials manufacturer, is also accelerating its industrial layout.

On March 18, 2026, the Chizhou production base project of Feikai Materials, with a total investment of approximately 1 billion yuan, was signed and completed. The project plans to purchase about 300 acres of chemical land and build multiple production lines suitable for multiple categories of organic synthetic materials. It will be implemented in two phases and will mainly produce pharmaceutical intermediates, new photoinitiators, photocurable resins and display materials. The planned annual production capacity is about 40,000 tons. After the project is fully completed and reaches production capacity, it is expected to achieve an annual output value of more than 1.8 billion yuan.

On March 25, Qichacha information showed that Chizhou Feikai New Materials Co., Ltd. has been officially established with a registered capital of 300 million yuan. Its business scope covers the research and development, manufacturing and sales of electronic special materials, and coating manufacturing. It is wholly owned by Feikai Materials. The establishment of the new company marks that the Feikai Materials Chizhou project has entered a substantial advancement stage.

According to data, Feikai Materials is mainly engaged in display materials, semiconductor materials and UV curing materials. It is currently transforming from a display material leader to a diversified semiconductor material platform company. The company stated that the new production base in Chizhou aims to enrich the product matrix, deepen the vertical layout of the industrial chain, and provide a physical carrier for the company to incubate new products in the new materials business segment.

Conclusion

At a time when China's panel production capacity has taken a dominant position in the world, the localization of upstream materials and the stable coordination of the supply chain will play a key role in the competition in the industrial chain. Whether BOE introduces new technologies through the establishment of a joint venture or Feikai Materials accelerates its production expansion, it is expected to promote the development of the domestic display materials industry chain to a certain extent.

In the future, with the continuous release of new production capacity, the upstream and downstream synergy of the domestic display industry chain is expected to further improve, and the competitiveness of enterprises in the global market will also continue to increase. (Trendezvous Display Morty)

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