China’s display industry accelerates OLED-centric restructuring – BOE accelerates technology and HKC enters the market

China’s panel industry is accelerating its restructuring around OLED technology through large-scale investments. BOE and HKC are each stepping up efforts to enhance OLED technologies for smartphones and IT applications, while establishing dual production systems that encompass both LTPS and OLED, aiming to strengthen their positions in the global display market.

BOE – Diversifying Technology While Advancing Apple Certification

BOE, which is currently producing OLED panels for the iPhone 17 Pro, is also expected to obtain certification for the iPhone 17 standard model within this year. BOE’s Apple-dedicated module production consists of 26 lines, with each newly invested line approximately 400 meters long and costing about 300 million CNY. The total investment for the Mianyang (绵阳) plant, including both panel and module lines, is estimated at 55 billion CNY.

At the Chengdu B12 plant, R&D efforts are focused on next-generation processes such as COE (Color on Encapsulation), Black PDL (Positive Type), and MLA (Micro Lens Array). The current monthly capacity of B12 is about 30 K substrates, which is expected to increase to 40 K by year-end. COE applications are being evaluated primarily for general smartphone models, while Black PDL processes are planned to expand into IT panels. MLA products are currently being supplied at 3–5 K substrates per month, with BOE also securing high-refractive-index materials for the technology.

HKC – Diversifying Production Through Dual Investments in LCD and OLED

HKC is expanding its OLED investment through the new H7 project. Unlike previous projects, H7 is being executed under the corporate entity of the existing H4 Mianyang LCD plant rather than a newly established subsidiary—an arrangement linked to local government funding structures.

The project includes a 60 K used 6th-generation LTPS LCD line acquired from JDI and a new 32 K 6th-generation OLED ELEAP line (divided into 8 K + 24 K phases). Additionally, HKC is expanding its H4 IPS Photo process line and constructing a new Mini-LED factory with an investment of approximately 10 billion CNY. Through these projects, HKC is building a comprehensive display production system covering LCD, OLED, and Mini-LED technologies.

Strategic Transition in China’s Panel Industry

The initiatives of BOE and HKC mark not just an expansion of production capacity but a shift toward technology-driven competitiveness. With high-value OLED technologies such as COE and MLA gaining traction, and government-led capital structures supporting investment diversification, China’s display industry is transitioning from scale-driven growth to technology-driven competition.

UBI Research’s “China Trends Report” provides detailed information on BOE’s progress in developing panels for Apple, the progress of new technology development by panel manufacturers, the latest investment trends, panel shipment volumes and unit prices, and the materials supply chain. The “China Trends Report” is available on the UBI Research website.

Junho Kim, Analyst at UBI Research (alertriot@ubiresearch.com)

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