Analysis of the layout of the global 8.6 generation OLED panel production line

    In the global market, the layout of 8.6-generation OLED panel production line is gradually spreading.2024 On March 27, BOE's 8.6-generation AMOLED production line held a groundbreaking ceremony in Chengdu. According to BOE Chairman Chen Yanshun, after the completion of the project, it will become the production base of medium-sized OLED display devices with the most advanced technology and the largest production capacity in the world. The project has a total investment of 63 billion yuan and covers an area of 925,200 square meters. It is designed to have a monthly production capacity of 32,000 glass substrates, and its products are mainly targeted in the field of high-end touch display panels for notebook computers and tablet PCs. BOE's construction of the project is aimed at following up the future demand of OLED market and seizing the market share of medium size. As the penetration rate of OLED cell phones continues to climb, IT panels such as notebooks, tablet PCs and other products OLED path is becoming clearer.

    On May 28, 2024, Visionox signed an investment cooperation memorandum with Hefei Municipal Government, planning to invest in the construction of 8.6-generation OLED panel production line in Hefei, with an estimated total investment of 55 billion yuan. This is the second high-generation OLED panel production line invested by Chinese mainland enterprises after BOE invested RMB 63 billion in Chengdu to build an 8.6-generation OLED panel production line. Visionox Hefei 8.6-generation OLED panel production line is designed to have a capacity of 32,000 substrates per month, and is committed to actively expanding medium-sized applications represented by flat panels, laptops, and automobiles.

    Samsung Display first invested 4.1 trillion won (about 22.4 billion yuan) to build 8.6-generation IT OLED panel production line, the goal is to formally realize mass production in 2026, but now to advance to the end of 2025. Meanwhile, on September 23, 2024, Samsung Display signed an investment MOU worth $1.8 billion with Vietnam's Bac Ninh Province to build a production base for IT-use and automotive-use OLED modules downstream of 8.6-generation OLED panels in Vietnam in the future.

    At present, the main production line of global OLED panels is the 6-generation line, while China and South Korea are launching a brand-new competition on the 8.6-generation OLED panel production line. With the gradual layout of these production lines, the global OLED panel market pattern may usher in significant changes. Medium-sized OLED market demand continues to rise, the global market size of OLED panels has been steadily expanding, and from the smartphone field gradually to the flat panel, pen electrics, automotive display panels and other fields continue to penetrate. According to Omdia's data, from 2020 to 2028, it is expected that the compound growth rate of OLED screen penetration in notebook computers will reach 61%, and the compound growth rate of OLED screen penetration in tablet computers will reach 27%.


1, BOE 8.6 generation OLED panel production line situation

    BOE invested in the construction of the first domestic 8.6 generation AMOLED production line with a total investment of 63 billion yuan, is so far the largest single industrial project in Sichuan Province investment volume. The topping-out ceremony of the production line was held on September 25, 2024 in Chengdu Hi-tech Zone, and it took only 183 days from the commencement of construction to the topping-out. Its design capacity is 32,000 glass substrates (size 2290mm×2620mm) per month, which is mainly used for the production of high-end touch OLED display panels for notebooks, tablet PCs and other smart terminals.

    At present, BOE has invested in the construction of three 6th generation flexible AMOLED production lines in Chengdu, Chongqing and Mianyang. Together with the construction of the first 8.6-generation AMOLED production line in China, BOE has fully demonstrated its world-leading technological strength and industry influence. By 2023, BOE's flexible OLED shipments have ranked first in China and second in the world for many consecutive years, and more than 30,000 flexible OLED-related patents have been applied for. BOE's flexible display technology is not only widely used in the field of cell phones, but also continues to expand into the fields of notebooks, automobiles, wearable and so on. Flexible display solutions such as folding screen, sliding screen and full screen have covered many domestic and foreign head terminal brands.

    It is also reported that the project is expected to realize mass production in October 2026 and reach full production in 2029, after which the annual output value is expected to exceed 40 billion yuan. The annual output value is expected to exceed 40 billion yuan after full production.

2、Vision 8.6 generation OLED panel production line situation

    On September 25, 2024, Visionox subsidiary Hefei National Display Technology Co., Ltd. held the 8.6 generation AMOLED production line in Hefei to start activities. The production line has a total investment of 55 billion yuan, with a design capacity of 32,000 glass substrates (size 2290mm×2620mm) per month.

    As the investment, construction and operation platform of the production line project, Hefei Guoxian is co-funded by Visionox and Hefei State-owned Platform. The production line will be the world's first 8.6-generation AMOLED production line equipped with no FMM (fine metal mask) technology, accelerating the company's entry into the new blue ocean market of medium size. The new high-generation AMOLED production line can significantly improve the cutting efficiency and economy of medium- and large-size OLED products, and it can also drive the downstream terminals to update and iterate through technological upgrading, creating new momentum for business growth. The technology of the production line covers the new “LTPO+” technology, which has significant advantages in low power consumption, ultra-thin, high brightness, long life, etc., polarizer-free COE technology, Tandem OLED and other advanced technologies.

    Academician of the Chinese Academy of Sciences, theoretical physicist Ouyang Zhongchan said, Visuno 8.6 generation AMOLED new production line for the first time in the world to apply no FMM technology program to subversive innovative technology to lead the industry change, China's emerging display industry to win the strategic initiative to seize the high ground of OLED technology is of great significance.

3、Samsung display 8.6 generation OLED panel production line situation

    Samsung Display plans to mass production of 8.6 generation IT OLED panels originally scheduled for early 2026 as far ahead as possible to the end of 2025. Samsung Display's Gen 8.6 IT OLED panels will begin mass production by the end of next year and will be the first to be installed in Samsung Electronics' laptops.

    Samsung Display's investment in 8.6-generation OLED is in large part to capitalize on demand for panels for Apple's IT devices, such as iPads and MacBooks, and is also intended to respond to other customers, such as Samsung Electronics. This is because OLEDs are gradually replacing the liquid crystal displays (LCDs) used in existing IT devices.

    It is reported that Samsung Display will fully launch the 8.6G OLED production line as early as 2023, and set up a special organization, the “IT Business Group”, which is responsible for technology development and commercialization. Meanwhile, Samsung Display signed a $1.8 billion investment memorandum of understanding with Vietnam's Bac Ninh Province on September 23 this year to build a production base for IT-use and automotive-use OLED modules downstream of 8.6G OLED panels in Vietnam.

Changes in 8.6G OLED panel market landscape

    As global panel giants such as BOE, Visionox and Samsung Display have laid out 8.6G OLED production lines, the competition in the mid-size OLED market has become more and more intense. At present, the mid-size 8.6-generation OLED production line targeting IT products is regarded as one of the important factors affecting the future pattern of the display market.

    With the gradual withdrawal of LCD production capacity in South Korea and Japan from the market, the dominance of the supply side of global LCD panels is shifting to China. Small size OLED represented by smartphones accelerated penetration, domestic manufacturers BOE, TCL Huaxing, VISION and deep day horse are in the last year into the major list of top five shipments. In this case, has not yet been fully occupied in the size of the OLED market has become a place where all parties must fight. Various manufacturers actively carry out research and development work, and strive to improve product yields and reduce costs, with a view to promoting the widespread application of OLED technology in the medium-sized screen. For example, Visionox 8.6-generation AMOLED production line adopts the world's leading FMM-free technology program, Samsung Display advances the mass production of 8.6-generation OLED production line, BOE invested in the construction of China's first 8.6-generation AMOLED production line and adopts the advanced LTPO backplane technology and laminated light-emitting device preparation process. These initiatives will have a profound impact on the future OLED panel market pattern.

Medium-sized OLED market demand growth

    With the continuous expansion of OLED applications, the OLED industry is expected to realize rapid growth in the long term; OLED displays currently have a high market share in the field of small-sized products such as smartphones, and the demand for medium-sized OLED products such as tablets and laptops is expected to continue to rise in the future.

    According to Omdia data, the global OLED smartphone penetration rate of 51% in 2023, shipments of 595 million; is expected to be 55% of the global OLED smartphone penetration rate in 2024, shipments of 661 million; is expected to be 60% of the global OLED smartphone penetration rate in 2028, shipments are expected to reach 750 million, 2023 to 2028 global OLED smartphone shipments. The compound growth rate of global OLED smartphone shipments from 2023 to 2028 is 4.74%. Meanwhile, OLED display will become a clear development trend for tablet PCs, laptops and other medium-sized products. Apple will gradually use OLED panels to replace LCD panels in iPad and Mac series, and the market share of Apple's products in tablets and computers will reach 40% and 9% respectively in 2023. Omdia believes that Apple's layout may lead to the rapid penetration of OLED panels in the field of medium-sized display. Omdia believes that Apple's layout may drive the rapid penetration of OLED panels in the mid-size display field. It is expected that the demand for OLED displays in the mobile PC market will grow at a compound annual growth rate of 37% from 2023 to 2031.

    The layout of 8.6-generation OLED panel production lines in the global market shows a multipolar competition. BOE, Visionox and Samsung display panel giants have increased investment in 8.6-generation OLED production line to seize the medium-sized OLED market. Medium-sized OLED market demand is growing rapidly, and it is expected to become the new growth point of OLED industry in the future. With the continuous progress of technology and cost reduction, 8.6-generation OLED panels will be more widely used in tablet PCs, laptops and other medium-sized devices, further promoting the development of the global display industry.