On September 4th, under the theme "Screen Connectivity, Intelligence for a New Future," the BOE Global Innovation Partners Conference 2024 (BOE IPC 2024) kicked off grandly at the Zhongguancun International Innovation Center in Beijing.
In his keynote speech "Screen Connectivity, Intelligence for a New Future," BOE Chairman Chen Yanshun stated:
"Based on in-depth reflection on industrial development practices, we have proposed the 'N-th Curve' theory as an upgraded strategy for the company's innovation and growth. With 'inheritance, innovation, and development' as the core of our corporate culture, we aim to ensure steady progress in our primary businesses while exploring the market-driven 'N-th Curve' through the accumulation and extension of capabilities. This ensures not only enhanced competitiveness but also sustainable high-quality growth."
Source: 京东方BOE(WeChat official account)
Below is the full speech from BOE Chairman Chen Yanshun:
Distinguished Partners, Guests, Ladies, and Gentlemen:
Good day! Welcome to the BOE 2024 Global Innovation Partners Conference!
One year has passed, and today we reunite at the BOE IPC in beautiful autumnal Beijing. This year's IPC is themed "Screen Connectivity, Intelligence for a New Future," symbolizing "gathering collective wisdom to embark on a new journey."
Source: 京东方BOE(WeChat official account)
In the past year, many of you, our industry partners, have experienced significant changes. On one hand, the semiconductor display market saw a brief recovery in the first half, but the growth in terminal consumer demand was insufficient, with capacity still undergoing adjustments and shifts. Under the framework of "weak growth and rebalancing," companies face dual pressures of global environmental instability and sluggish consumer growth. On the other hand, emerging display technologies continue to evolve rapidly, and new technological advancements, especially in AI, are accelerating industry transformation. As the world changes quickly, we must ask: where does our future lie? What are the next growth points for the industry? These are questions every industry player is contemplating.
BOE is no different. Over the past 30 years, we have faced critical challenges in strategic development, technology iteration, business model upgrades, and organizational changes. Looking back, I often reflect on how we made key decisions during pivotal moments. One notable story many might have heard is the decision between real estate and semiconductor displays as our main focus. There have been many similar stories of choice, such as deciding whether to focus solely on LCD when it was booming or to venture into the more challenging OLED technology. Or later, when our semiconductor display business was seeing steady growth, the choice was between enjoying the fruits of success or boldly embracing the IoT transformation.
The first choice led us to launch China's first flexible OLED production line, advancing global flexible OLED applications. The second choice gave birth to several international benchmark projects and nurtured the platform we gather on today—BOE IPC.
Source: 京东方BOE(WeChat official account)
Throughout our 30-plus years of development, BOE has consistently turned industry downturns into opportunities for growth. This success can be attributed to our ever-present awareness of potential risks and our forward-looking insight into industry trends, continuously exploring new directions for development.
Based on our practical experiences, we proposed the strategic "N-th Curve" theory for the company's innovation. With "inheritance, innovation, and development" as the core of our corporate culture, we have ensured steady development of our primary business while focusing on scalability, rationality, and strong support as guiding principles. This enables us to continually explore the "N-th Curve" that aligns with market needs, ensuring sustained competitive advantages and driving high-quality, sustainable growth.
Looking back at our journey, BOE has never stopped exploring new paths. Decades ago, before BOE was founded, we aimed to develop hot-selling electronic vacuum devices, starting from scratch to build the largest electron tube factory in Asia. As the industry landscape shifted, we restructured BOE and made critical decisions, such as choosing to prioritize semiconductor displays over real estate. This led us to deep dive into the semiconductor display industry.
This decision set the stage for the development of LCD and OLED, two major "curves" that, in collaboration with our ecosystem partners, achieved numerous industry firsts. Seizing the opportunity presented by the Fourth Industrial Revolution, we initiated the IoT transformation, driven by our "Screen Connectivity" strategy, which has become a new pillar of growth. The historical and ongoing curves of development we have explored are collectively referred to as our "N-th Curve."
The "N-th Curve" is not merely a theoretical concept; it is grounded in the inheritance of corporate culture and the expansion of core advantages and resources. Throughout BOE’s decades-long development, we have adhered to the principles of "inheritance, innovation, and development" while enhancing corporate competencies and building our core competitiveness. Today, we remain focused on exploring the next curve to drive BOE’s high-quality growth for the next 30 years.
Strategic guidance, technological innovation, system optimization, and cultural accumulation have all played critical roles in our journey to explore the "N-th Curve." Corporate growth is akin to an ecosystem of trees, where each business unit represents a tree with its unique vitality, contributing to the overall stability and diversity of the forest.
Strategic guidance serves as the root system, anchoring the business in a competitive environment. Technological innovation is like sunlight, providing energy for growth. System optimization resembles the laws of nature, managing the ecosystem’s balance and health. Cultural accumulation is like the soil and water that enable sustainable growth. These elements are interdependent and indispensable.
BOE’s "Screen Connectivity" strategy is a practical manifestation of the "N-th Curve" theory. In 2021, we launched the "Screen Connectivity" strategy, establishing the "1+4+N+Ecosystem Chain" business structure to continuously explore new growth curves. Once the feasibility of a new industry is verified and the business model is sustainable, we integrate it into the "1+4+N+Ecosystem Chain" to drive long-term growth.
Through years of perseverance, we have maintained industry leadership in LCD with our five core mainstream products while achieving notable success in our transformation businesses. Our innovation devices in commercial, automotive, splicing, wearable, and electronic whiteboard applications have all ranked first in shipments.
In smart terminals, we have extended our value chain with innovations like IoT and low-power applications. In system solution businesses, we have successfully integrated digital media with urban tourism, exemplified by projects like Chengdu Twin Towers and the Yibin Sanjiang Riverside. Recently, we launched the C100 series of smart integrated machines, incorporating multimodal AI interaction and large-scale model technology.
Source: 京东方BOE(WeChat official account)
In the areas of "4" and "N"Through technological integration, industrial ecosystem empowerment, and flexible market operations, we have made significant progress in fields such as sensing, MLED, smart healthcare, industrial IoT, smart energy, digital art, microbiology, and light-field displays.
Source: 京东方BOE(WeChat official account)
Our innovation business has seen remarkable financial performance. By the end of 2023, revenue from innovative businesses accounted for 30% of our total revenue, exceeding 50 billion RMB. This achievement is the result of our relentless pursuit of innovation and our determination to step out of our comfort zone and tackle challenges head-on.
In the Perovskite Field With a "skyward vision and grounded approach," and adhering to "respect for technology and persistence in innovation," we are continually searching for the "N-th Curve" of future development. After over 30 years of experience in semiconductor displays, BOE has accumulated three core advantages: semiconductor display technology, glass-based processing, and large-scale integrated intelligent manufacturing capabilities. Leveraging these core strengths, we have expanded into areas such as perovskite photovoltaics and glass-based packaging. Additionally, we view AI as the driving force behind the company's innovation transformation, and we are actively enhancing our related core competencies.
Source: 京东方BOE(WeChat official account)
Green and sustainable development is a global concern in today’s society. As the demand for green energy surges in the intelligent era, efficient and environmentally friendly perovskite photovoltaics hold tremendous application potential. BOE’s capabilities in large-size glass-based film preparation and large-scale integrated intelligent manufacturing can play a significant role. We have already completed high-performance device preparation at the trial production line level and are now advancing the construction of a pilot line to steadily promote the commercialization process.
In the Glass-Based Field As the global semiconductor industry continues to evolve, related technologies such as semiconductor packaging have been continually upgraded. Glass materials, with their superior mechanical, electrical, and thermal properties, can be used as substrates and interlayers for semiconductor packaging, enabling larger sizes, higher-density interconnects, and enhanced mechanical strength.
BOE’s accumulated expertise in glass-based through-holes, deep-hole copper filling, and multilayer wiring offers clients more competitive and higher-performing packaging solutions. We have already established a trial production line and formed an advanced glass-based packaging project team, with promising results.
Source: 京东方BOE(WeChat official account)
In the AI+ Field The advent of AI technologies like ChatGPT and Sora has ignited an AI revolution. As the next-generation universal productivity tool, AI is deeply integrated into various industries. It can be said that "every industry can be redefined by AI." AI has become a critical driver of high-quality industrial development.
Guided by the "N-th Curve" theory, we have built core technological capabilities in model training, big data, and IoT. We are now deeply integrating AI into the manufacturing, product, and operational sectors, with a particular focus on "AI+Manufacturing," "AI+Products," and "AI+Operations." The recently mentioned C100 smart integrated machine is an example of "AI+Products." We aim to use AI to empower the semiconductor display and IoT businesses, providing customers with smarter, more user-friendly, and valuable products and services.
Source: 京东方BOE(WeChat official account)
In the Area of Resource Investment Looking toward the future, innovation holds great promise, and we believe there are immense development opportunities within future "N-th Curves." By 2030, we estimate that the global market potential for our "1+4+N+Ecosystem Chain" business model will exceed one trillion dollars. We invite all partners to join us in meeting the challenges and sharing the opportunities.
By 2030, BOE plans to release over 500 collaborative projects, invest over 100 billion RMB in research and development, and spend over 1 trillion RMB in procurement to drive industrial growth. Through platform building, incubation services, innovation collaborations, and talent exchanges, we will continue to stimulate innovation across the industry.
In the Field of Sustainable Development Sustainable development is the direction of BOE's strategic "N-th Curve" theory. The preventive, long-term, and innovative characteristics inherent in the "N-th Curve" theory are consistent with the internal logic of the circular economy and highly aligned with the principles of sustainable development.
Thus, as we work toward creating the "N-th Curve," we will remain committed to fulfilling our corporate responsibilities. To achieve this goal, we will further optimize governance structures, develop sustainable action plans, and advance BOE’s sustainable development strategy into a new phase, realizing a harmonious unity of ecological, economic, and social benefits.
In terms of environmental protection, we pledge to achieve carbon neutrality in our operations by 2050. Later, BOE Group President Gao Wenbao will also share insights on BOE’s approach to sustainable industrial development.
Source: 京东方BOE(WeChat official account)
Screen Connectivity, Intelligence for a New Future
Earlier, I listed some of BOE's achievements in its development journey and used the analogy of a forest ecosystem to explain the "N-th Curve." BOE’s success today would not have been possible without the strong support of all our partners here today. Together, we have overcome numerous technical challenges, weathered the industry's winter, and witnessed the transformation of the industry.
For this IPC, we chose the theme "Screen Connectivity, Intelligence for a New Future" because it represents the collective wisdom of you, me, and all our partners. I firmly believe that no matter how the environment changes, only by "gathering wisdom" can we "move forward toward innovation."
Source: 京东方BOE(WeChat official account)
Partners and friends, we are in an era driven by innovation and full of endless possibilities. Let us stand at this new historical starting point and embark on a new journey together. By pooling industrial resources and business wisdom, we can empower screens with more functions, create more forms, and integrate more scenarios. Through the lens of the screen, let us gather intelligence for a new future, actively promoting the "N-th Curve" of industrial development, stimulating vitality within the ecosystem, and building a smarter, more prosperous, and better future world together!
Thank you!
This article is an English translation of the original article titled BOE IPC · 2024 | BOE（京东方）董事长陈炎顺：屏之物联 聚智向新 published on BOE’s WeChat official account.