BOE's collaboration with Corning has sparked intense market speculation, prompting the company to issue a timely risk warning.
In an announcement released on Thursday evening, BOE clarified that it has not initiated any business cooperation with NVIDIA, stating that related inferences by some media outlets lack factual basis. Concurrently, the company emphasized that its glass substrate packaging carrier board business, perovskite business, and optical interconnect business are still in the stages of technical discussion and verification. It is anticipated that these ventures will not have a significant impact on the company's operating performance over the next 2-3 years.
Following the news of BOE signing a memorandum of cooperation (MoC) with Corning on Wednesday, glass substrate concept stocks surged collectively on May 21st. BOE A-share opened with a limit-up "一字"涨停, while shares of companies like Rainbow Display and Wufang Optoelectronics also rose sharply. The company's latest risk warning is intended to cool down overheated market sentiment.
MoC Holds Limited Binding Force; Mass Production Timeline for New Businesses Remains Unclear
According to BOE's Wednesday announcement, the company signed a three-year MoC with Corning, covering cooperation in areas such as glass substrate packaging carrier boards, foldable glass, perovskite glass substrates, and optical interconnect applications. BOE Chairman Chen Yanshun and Corning Chairman and CEO Wendell P. Weeks jointly attended the signing ceremony. However, in the subsequent risk warning, the company explicitly stated that this MoC only represents the current cooperative intent of both parties. Apart from clauses concerning confidentiality, intellectual property, applicable law and dispute resolution, and liability limitations, which are legally binding, the remaining terms do not carry legal enforceability. Regarding business progress, the aforementioned three new ventures currently have no mass production and have not generated any mass production revenue. There is significant uncertainty regarding whether expected benefits can be realized and the specific timeline for doing so. BOE clearly stated that over the next 2-3 years, these businesses will not have a significant impact on the company's operating performance.
NVIDIA Rumors Directly Denied
Another key point of the clarification announcement is the company's direct denial of market rumors regarding cooperation with NVIDIA. The company stated that, as of now, it has not engaged in any business cooperation with NVIDIA, explicitly naming some media outlets for making inferences lacking factual basis. Glass substrates, due to their potential application value in advanced packaging, have recently been frequently linked to narratives surrounding the AI chip supply chain. NVIDIA, as a core player in this field, has also been actively associated with such speculation by the market.
Corning Holds a Dominant Position in the Substrate Glass Market
The cooperation between BOE and Corning is not starting from scratch. BOE has previously indicated that strategic synergy between the two companies spans over 20 years. Chairman Chen Yanshun stated at the signing ceremony that this cooperation is an "important layout for jointly exploring next-generation industry opportunities" and that the company is elevating its decades-accumulated leading capabilities into "future-oriented general-purpose technological capabilities." Corning holds a pivotal position in the flat panel display substrate glass market. According to Counterpoint data, Corning, AGC, and NEG collectively hold approximately 80% of the market share for flat panel display substrate glass. Among them, Corning leads the industry with a market share exceeding 50%.
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