BOE subsidiary to build 12-inch silicon-based OLED fab

A reporter recently learned from Yunnan Visionsilicon Optoelectronics Technology Co., Ltd., a subsidiary of BOE Group, that the company is building a new 12-inch OLED microdisplay production line in the Central Yunnan New Area.

The 12-inch project will be implemented in three phases, with full completion expected by January 2024, and a designed annual production capacity of 5.23 million units. The first phase of the project commenced in August 2020 and is currently undergoing process equipment commissioning.

Founded in November 2017, Yunnan Visionsilicon Optoelectronics Technology Co., Ltd. focuses on the near-eye display market, including AR/VR, EVF (Electronic Viewfinders), and FPV (First-Person View) applications. The company is primarily engaged in the R&D, production, and sales of OLED microdisplays, and is committed to building a world-class R&D and manufacturing base for OLED microdisplays with leading-edge capabilities. Previously, the company had already established an 8-inch OLED microdisplay production line with an annual capacity of 2 million units. It is worth noting that the company's silicon-based OLED production line is the first in China with mass production capabilities, featuring internationally leading technology and filling the gap in the domestic civilian microdisplay industry.

It is reported that with the growth of the AR/VR market, the 12-inch production line will help maintain the company's competitiveness by meeting the demand for larger sizes, higher brightness, lower power consumption, and other high-end technology trends.

Silicon-based OLED microdisplays represent the third generation of display technology and are considered the "most suitable microdisplay technology for the near-eye display industry," potentially becoming the next-generation microdisplay technology. With growing demand for silicon-based OLED display panels in AR glasses, VR headsets, infrared detectors, 3D medical equipment, and other applications, the market is broadly optimistic about the prospects of silicon-based OLED. Investment in silicon-based OLED is heating up, with the market size expected to reach $90 billion by 2023.

The invention and application of the microscope have significantly advanced social medicine, science and technology, and other fields. Silicon-based OLED microdisplays, as third-generation display technology, feature small size, light weight, low power consumption, and high PPI. They are the core component of near-eye display systems and are known as the "most suitable microdisplay technology for the near-eye display industry." Silicon-based OLED is likely to become the next-generation microdisplay technology.

Investment in silicon-based OLED is currently surging.

The silicon-based OLED industry chain includes upstream raw materials, midstream OLED panel manufacturing, and downstream OLED applications. The upstream segment includes silicon substrates, driver ICs, metal materials, organic materials, packaging materials, and other key components, supplying raw materials and equipment to midstream OLED microdisplay manufacturers. After manufacturing display panels, midstream companies supply products for downstream applications such as head-mounted displays, smart wearables, industrial instruments, and medical devices.

With the growing demand for silicon-based OLED display panels in AR glasses, VR headsets, infrared detectors, 3D medical equipment, and other applications, the market is broadly optimistic about the future of silicon-based OLED.

Companies from Europe and the United States entered the market early, and currently, there are relatively few manufacturers worldwide engaged in the development and production of OLED microdisplays. They are mainly concentrated in Europe and the U.S., including U.S.-based eMagin, UK-based Micro Emissive Displays (MED), Germany's Fraunhofer IPMS research institute, France's Micro OLED, Japan's Sony, as well as China's three major silicon-based OLED players: Olightek, BOE, and Seeya Technology. The upstream silicon-based OLED industry chain is largely controlled by Japan and South Korea, while the midstream market features a tripartite competitive landscape among eMagin, MicroOLED, and Olightek.

Multiple major companies are advancing the technology development and mass production of silicon-based OLED. Since May 2020, domestic display manufacturers have been making frequent investment moves in the silicon-based OLED sector, with total production line investments exceeding RMB 20 billion in 2020. Anhui Xitai Technology invested RMB 12 billion in Huzhou, Zhejiang Province, to build a silicon-based OLED microdisplay production line with an annual capacity of 250,000 units.

As of December 2020, BOE had completed an 8-inch silicon-based OLED production line and had also invested in building the world's largest 12-inch silicon-based OLED production line.