BOE Invests $9 Billion in Chengdu Display Plant in southwestern China

BOE, a major display maker, is investing $9 billion in Chengdu to build a Gen-8.6 AMOLED production complex, boosting China’s display manufacturing dominance. The plant, set to be the largest industrial project in Beijing, aims to start mass production in Q4 2026, positioning Chengdu as a leading hub for advanced flexible panel manufacturing.

Credit: BOE

Chengdu to Become Display Industry Hub as BOE Announces $9 Billion Investment in Next-Gen Production Complex

Chengdu, China – In a significant move that is set to boost China’s prowess in display manufacturing, BOE Technology Group, a major supplier to Apple and one of the globe’s leading display makers, has inked a deal with Chengdu’s Hi-Tech Industrial Development Zone to construct a cutting-edge production complex. The project, estimated at a whopping 63 billion yuan (approximately US$9 billion), is poised to become the largest single industrial venture in the capital in terms of investment.

Setting the Stage for Next-Gen Displays

BOE, headquartered in Beijing, revealed plans for this ambitious project back in December, and now, the company is gearing up to build its Gen-8.6 AMOLED production facility in Chengdu. This facility is specially designed to cater to the surging global demand for high-end displays utilized in laptops and tablets.

Investor Response

Following the announcement, BOE’s shares experienced a modest uptick, closing at 3.76 yuan in Shenzhen, marking a 1.07% increase on Thursday.

Boosting Collaboration with Big Tech

The move highlights a broader trend of Chinese local governments fostering collaboration with major tech players in the private sector. Such endeavors align with the nation’s overarching goal of reviving business confidence and propelling economic recovery.

Chengdu’s Ascent as a Display Manufacturing Hub

The new BOE production facility is poised to position Chengdu as a central hub for advanced flexible panel manufacturing within the display industry. This strategic move is anticipated to fortify mainland China’s lead in display manufacturing capacity over the next few years.

Construction Timeline and Production Projection

BOE estimates that the construction of the new plant will span 34 months, with mass production anticipated to commence by the fourth quarter of 2026. The Gen-8.6 AMOLED production line is designed to produce a substantial 32,000 glass substrates monthly, each measuring 2,290 millimeters by 2,620 millimeters.

Advancements in Display Technology

Beyond merely accommodating larger substrates, BOE asserts that its Gen-8.6 AMOLED production line will enhance panel-cutting efficiency for mid-size displays, bring down production costs, reduce power consumption, and extend the lifespan of displays.

Rapid Expansion of OLED Displays

A recent report by Display Supply Chain Consultants (DSCC) predicts a rapid expansion of OLED displays for mobile and other information technology devices between 2022 and 2027, with a compound annual growth rate of 7.3%. The global OLED market is projected to generate a substantial US$64 billion in revenue in 2026, driven primarily by the escalating demand for panels used in laptops, computer monitors, and tablets.

China’s Dominance in Display Manufacturing

According to the DSCC report, China is anticipated to dominate global display manufacturing capacity, boasting a commanding 72% market share from 2026 to 2027. In comparison, South Korea and Taiwan are expected to hold market shares of 8% and 17%, respectively, by 2027.

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