BOE Establishes Micro OLED Production System on B1 Line… Strengthens ‘Micro Display’ Competitiveness with In-House Silicon Backplane Development

BOE will convert its Beijing B1 (LCD) line to complete an early-stage 12-inch silicon-based Micro OLED (OLEDoS) production cleanroom and establish a mass production system based on 5K resolution. Sunic system ‘s 12-inch deposition equipment is scheduled for delivery in November. Investment funds will be supported by the Beijing B20 line, maximizing utilization of the existing B1 line infrastructure. Additionally, the company has replaced its previously outsourced silicon (Si) backplane design with an in-house development approach, achieving shorter design cycles and rapid feedback loops. Future investment plans extend beyond Micro OLED modules to include optical modules such as optical waveguides.

The primary investment objective is to respond to Meta-oriented products, which are currently competing with Seeya. Phase 1 line capacity is 5K units per month based on 12-inch wafers. Depending on market conditions, plans include expanding Phase 2 with an additional 5K capacity line.

The B20 line is currently constructing Phase 1 for R&D and manufacturing of high-resolution, high-speed LCD displays. Layout plans and mass production schedules for a Micro LED pilot line are also being finalized.

BOE is reorganizing its portfolio centered on OLEDoS and LEDoS. It is strengthening its market responsiveness with a diversified lineup: high-resolution OLEDoS products for the premium AR/VR market and high-speed LCDs for the mid-to-entry-level XR market. Concurrently, it is actively developing LEDoS as a next-generation product.

BOE is developing and mass-producing micro-displays at multiple bases including Qingdao (BIOT), Ordos (B6), Chongqing (B12), and Kunming (BMOT). The Chongqing base operates R&D and production lines for VR AMOLED, while Kunming operates OLEDoS production lines. Notably, it is strategically repurposing existing LCD infrastructure to concurrently produce high-resolution LCDs exceeding 2,000 ppi. Ordos (B6) manufactures high-speed LCD panels, while Qingdao (BIOT) assembles and produces high-speed LCD modules. BOE is intensifying its competition for XR panel orders through rapid facility expansion compared to rivals like Sony and Seeya.

The global micro-OLED display market is expected to see intense competition for orders of next-generation products destined for XR devices within the next few years. Following Sony and Seeya, companies like BOE and SIDTEK are making large-scale investments to establish annual production capacities ranging from several million to tens of millions of units. This will enable global brands like Meta, Apple, and Samsung to utilize multiple supply chains. BOE’s in-house silicon-based design and mass production system are expected to enhance the group’s overall standing in terms of product specifications and cost competitiveness.

BOE’s recent strategic shift aims to strengthen technological independence within China’s industry while securing a core supplier position in the global XR display ecosystem. Initiatives like developing its own silicon backplane and establishing a 12-inch OLEDoS line are expected to improve performance, reduce mass production costs, and shorten product launch lead times.

Detailed information on China’s Micro OLED industry status can be found in UBI Research’s report.

Changho Noh,  Senior Analyst at UBI Research  (chnoh@ubiresearch.com)

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