FPC Enterprise Shangda Electronic Smart Factory Zhangzhou Capped 3.5 Billion COF Project Put into Production Immediately

- Oct 10, 2018-

On September 27th, the topping ceremony of “Shangda Electronic Cangzhou High-precision Ultra-thin Flexible Package Substrate and Integrated Circuit Packaging Project and COF Project” was held in Zhangzhou, Jiangsu Province.


With the capping of the factory, the main part of the electronic modern intelligent factory has been basically completed, and the first high-end COF production line in China is put into production soon. It is reported that the equipment investment amount of the first test line of Shangda Electronic COF production line is about 1 billion yuan. The construction of the Shangda Electronic COF project has filled the gap in the domestic independent design and manufacture of the flexible package substrate of the tape and drive IC. The project is scheduled to be mass-produced in May 2019. At that time, the combined capacity of Jiangsu Shangda and Japan FLEXCEED Co., Ltd. will rank third among the five similar companies in the world.


According to the "White Paper on Economic and Social Impacts of 5G" issued by China Information and Communication Research Institute, by 2030, the popularity of 5G commercial is expected to drive China's direct economic output of 6.3 trillion yuan and economic value added of 2.9 trillion yuan. The FPC (flexible circuit board) industry, which is an important component of mobile phones, will usher in tremendous development opportunities. It is estimated that in 2019, the total output value of the FPC industry will reach 13.832 billion US dollars. However, it must be said that compared with some FPC companies in Japan, South Korea and Taiwan, China's FPC industry started late, and there is a certain gap in technology, industry chain, customers and suppliers.


Li Xiaohua, chairman of Shangda Electronics, said that 5G will inevitably lead to the upgrading of mobile terminals, which also requires the production technology of FPC itself to improve. "For a heavy asset industry like FPC, in order to maintain the technological leadership of the products, Shangda Electronics needs to move toward the high end of the industry while expanding its production capacity."


In June 2017, the leader of the localization of flexible circuit boards and the leading enterprise of China's FPC industry, Shangda Electronics and the People's Government of Chenzhou City reached a strategic cooperation of “building China's first high-end COF production line” with a total investment of 3.5 billion yuan.


According to reports, the COF project will build a modern smart factory, introduce an international production team, and introduce imported professional production and testing equipment. The product will use the industry's most advanced single-sided etching process, double-sided additive process, to produce 10 micron grade single and double-sided tape COF products, the entire process is produced in roll-to-roll automated mode. The project construction capacity is 30KK/month single-sided COF package substrate and 36KK/month COF IC package product production line.


With the completion of the COF production line, Shangda Electronics, which is the “invisible champion” in the field of flexible circuit boards, will officially enter the rank of “production of 10 micron line level manufacturers”, filling the gap in the domestic high-end manufacturing field of COF and completing the domestic display. Domestic replacement of panel core devices. It will further reduce the cost of manufacturing processes such as large-screen mobile phones, LCD TVs, and OLED displays, thereby promoting innovation and industrial development of related technologies.


According to the current market information, due to the increasing demand for high-end TVs and mobile phones such as ultra-high-definition TV (4K) panels, AMOLED mobile phones, borderless and narrow-framed mobile phones, COF as a core device is facing tight supply and out of stock will continue More than 1 year. Jiangsu Shangda's mass production in early 2019 will be the best time to enter the market! Taiwan's main driver IC design company has already booked the production capacity of the Luzhou plant in advance.


After nearly 14 years of hard work, Shangda Electronics has become one of the largest flexible circuit board suppliers in China, and the company will enter the top 5 in the global FPC industry in the next five years. High-precision ultra-thin flexible package substrates and integrated circuit packaging projects are major core projects of Shangda Electronics. Many domestic customers such as Huawei, vivo, BOE, and Tianma are closely watching the launch of the COF project. It is estimated that after the production is completed, the annual sales will reach 5 billion yuan.