Beijing-based electronics group BOE Technology, the largest supplier of screens for the iPhone 15, will invest $9bn in a factory complex in central China.
According to the South China Morning Post, the next-generation production site will be located in Chengdu, capital of Sichuan province, and will bolster mainland China’s lead in display manufacturing capacity.
The Chengdu municipal government said yesterday that BOE had signed a deal with its High-Tech Industrial Development Zone to build the plant, which it said was the largest single investment in the city’s history.
The factory will build active-matrix organic light-emitting diode screens – known as AMOLED. The technology behind this kind of display dates back to 2007, but its realisation has become increasingly sophisticated over the years. The latest iteration – “gen 8.6” – is in high demand around the world for premium laptops and tablets.
BOE said its new plant would be able to efficiently produce mid-sized displays with a lower power consumption and a longer lifespan than has previously been possible.
A recent report from Display Supply Chain Consultants predicted that the market for OLED screens would grow 7.3% a year between now and 2027, and that China would have a 72% share of a $64bn market by the time the Chengdu factory is opened.
By comparison, South Korea and Taiwan’s market shares are expected to reach 8% and 17% respectively.
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