China’s display industry is witnessing a new wave of large-scale OLED investment, with domestic panel makers pouring capital into next-generation production lines. Following TCL CSOT’s official launch of its 8.6-generation ink-jet-printed OLED line at the end of October, market data indicates that three such lines are now under construction in China. Plus Samsung Display’s own expansion, total spending by the four major panel makers is approaching RMB 170 billion, signaling that competition in the mid-size OLED segment is set to heat up rapidly over the next three years.
In recent years, as OLED penetration in smartphone market has neared saturation, panel makers gradually shift their focus toward mid- and large-size applications. Chinese manufacturers have moved aggressively to expand their OLED capacity, with Visionox, BOE, and TCL CSOT all kicking off investments in higher-generation equipment.
In terms of capital intensity, the 8.6-generation OLED project under Hefei Guoxian — in which Visionox holds a stake — carries an investment of RMB 55 billion. TCL CSOT invested RMB 29.5 billion in its t8 project, while BOE continues to scale its own G8.6 line, pouring an investment of RMB 63 billion. In total, the investment amount of these three projects exceed RMB 140 billion, which can amount to RMB 170 billion if counting in Samsung Display.
OLED production lines are capital-intensive and require long build-out cycles. Despite BOE’s large revenue scale, the firm posted only CNY 5.323 billion in profit last year, while Visionox reported a loss of CNY 2.505 billion — underscoring the financial burden borne by panel makers. Analysts note that some manufacturers must rely on fundraising and expanded financing channels to maintain their investment pace, reflecting the fairly high barriers to entry in this round of high-generation OLED competition.
Still, Chinese companies are betting on robust mid-size OLED demand over the next three to five years. TCL CSOT CEO Zhao Jun said four high-generation OLED lines are currently being advanced across the industry, with capacity expected to be released gradually from the second half of 2026 through 2028. Ultimately, he stressed, differentiation will hinge on technology and yield competitiveness.
From a timeline perspective, BOE’s G8.6 line is expected to begin mass production as early as 2H26. Visionox anticipates ramp-up in 1Q27, while TCL CSOT’s t8 project is slated for full production in 2H27 — a period that will see a concentrated wave of new capacity entering the market.
(Photo credit: TCL CSOT)
