Apple supplier BOE signs US$9 billion deal to build next-generation display plant in southwestern China

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Apple supplier BOE Technology Group, one of the world’s largest display makers, will set up a 63-billion yuan (US$9 billion) next-generation production complex in Chengdu, capital of southwestern Sichuan province, that is expected to bolster mainland China’s lead in display manufacturing capacity over the next few years.
The Chengdu municipal government on Wednesday said in a statement that Beijing-based BOE and the city’s Hi-Tech Industrial Development Zone have signed the contract to build the plant, representing the largest single industrial project in the capital in terms of investment.

BOE, which initially announced the project last December, will build its so-called Gen-8.6 AMOLED – for active-matrix organic light-emitting diode – production facility to meet soaring global demand for high-end displays used in laptops and tablets, according to the firm.

Shares of BOE in Shenzhen closed up 1.07 per cent to 3.76 yuan on Thursday.
BOE Technology Group shows its latest flexible notebook display at this week’s CES trade show in Las Vegas, Nevada. Photo: Handout

The new BOE production facility is expected to position Chengdu as the display industry’s largest manufacturing base for advanced flexible panels.

Construction of the new plant is estimated to take 34 months, according to BOE, and mass production is projected to start by the fourth quarter of 2026. The next-generation plant is designed to produce 32,000 glass substrates – each measuring 2,290 millimetres by 2,620mm – every month.

BOE Technology Group previously established mainland China’s first sixth-generation, flexible OLED production line. Photo: Handout

Apart from accommodating larger substrates, BOE said its Gen-8.6 AMOLED production line will be able to enhance panel-cutting efficiency for mid-size displays, reduce production costs, lower power consumption and achieve an extended lifespan.

OLED displays for mobile and other information technology devices are expected to enjoy rapid expansion between 2022 and 2027, with a compound annual growth rate of 7.3 per cent, according to a recent report by Display Supply Chain Consultants (DSCC).

China is forecast to dominate global display manufacturing capacity, with a 72 per cent market share from 2026 to 2027, the DSCC report said.

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By comparison, South Korea and Taiwan’s market shares are expected to reach 8 per cent and 17 per cent, respectively, in 2027.

The global OLED market is predicted to generate US$64 billion in revenue in 2026, driven by demand for panels used in laptops, computers monitors and tablets, according to DSCC.

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