HKC Pushes OLED Expansion: Smartphone Panel Trial Production Starts, G6 eLEAP Line Planned

/in , /by

HKC, one of China’s leading display panel manufacturers, is accelerating its transition into the small- and medium-sized OLED market. Moving beyond its traditional focus on large-sized LCDs, the company is now expanding into flexible OLED panels for smartphones and IT devices, while also actively investing in next-generation maskless OLED fabrication technologies.

HKC plans to begin trial production of smartphone OLED panels at its H6 facility in July 2025. The Phase 1 line has been built using secondhand 5.5-generation equipment previously owned by Royole, and features a hybrid structure that applies flexible encapsulation on glass substrates. The TFT backplane has a monthly capacity of 4,000 substrates, and the evaporation process follows a quarter-cut method.

In Phase 2, HKC is incorporating 4.5-generation EVEN equipment transferred from Japan’s Sharp, which is expected to be restored and operational by April 2026. The company also owns a dedicated OLED R&D line, currently undergoing restoration, with completion targeted for September 2025.

Notably, HKC is planning to build a dedicated G6 (6th-generation) OLED mass production line based on eLEAP technology. While Kunshan was initially considered as the investment site, current indications suggest the project will likely shift to Mianyang in Sichuan Province, due to changing policy dynamics and stronger local government partnerships. HKC is currently seeking regulatory approval from the Chinese government for its G6 OLED line based on eLEAP technology. While FMM (Fine Metal Mask) processing is also being considered as an option, it is understood that approval for FMM is highly unlikely due to regulatory constraints. The production line is expected to incorporate secondhand equipment from Japan Display Inc. (JDI), with potential for accompanying technical support.

This strategy signals a broader shift in China’s OLED industry, moving beyond simple production scale-ups to focus on achieving global competitiveness in advanced manufacturing technologies.

A parallel effort is underway at Visionox, which is building a G8.6 OLED line (V5) in Hefei. There, the company is developing and preparing to mass-produce OLED panels using ViP (Visionox Intelligent Pixelization), a maskless pixel formation technology based on photolithography and patents from Japan’s SEL. This approach avoids the resolution and yield limitations associated with traditional FMM processes.

HKC’s eLEAP investment aligns with this broader maskless OLED trend. Developed by JDI, eLEAP technology enables precision pixel formation without metal masks, offering advantages in aperture ratio and panel longevity. HKC signed an MOU with JDI in 2023 for joint development of eLEAP-based OLEDs. Although the companies later scaled back plans for a joint OLED fab, technical collaboration is understood to be ongoing.

The parallel efforts of HKC with eLEAP and Visionox with ViP demonstrate China’s intent to lead not only in OLED manufacturing capacity, but also in core next-generation fabrication technologies. This shift underscores the nation’s strategic ambition for technological self-reliance and global leadership in OLED production—an ambition likely to reshape the future of the small- and medium-sized OLED industry.

Changwook Han, Executive Vice President/Analyst at UBI Research (cwhan@ubiresearch.com)

▶ China Market Trend Report Inquiry