Smartphones featuring OLED displays have become a major trend in the tech industry. Chinese manufacturer BOE is showing strong confidence in this market, with plans to start mass production of OLED panels for smartphones this year. The company is also aiming to secure large orders from Apple in the future.
According to a report by Nikkei News on the 24th, BOE’s Sichuan B7 plant will begin mass-producing OLED panels for smartphones by the end of this month. During the National Day holiday, engineers will remain at the factory to ensure continuous production, with hopes of accelerating shipments by the end of October.
In addition, BOE executives revealed that the company is constructing a new OLED factory in Mianyang, Sichuan, which is expected to start operations in 2019. This facility is reportedly intended to supply OLED panels for the iPhone. According to insiders, Apple is currently evaluating BOE's technology and may first adopt it in the Apple Watch before expanding its use to iPhones.
Currently, all iPhone OLED orders are dominated by Samsung Electronics. To reduce dependency on a single supplier, Apple has been reaching out to BOE, LGD, and Japan Display, sharing technology with these companies to diversify its supply chain.
Can BOE’s technology match that of industry leader Samsung? Foreign experts working at Chinese OLED factories suggest that the technology in BOE’s B7 plant is comparable to Samsung’s. With strong government support and significant financial backing, BOE has invested over RMB 93 billion in its Chengdu and Mianyang plants—far exceeding Japanese competitors and allowing it to quickly close the gap with Korean facilities.
Today, Samsung holds an overwhelming 90% share of the smartphone OLED market, followed by LGD, with BOE trailing behind. While Nikkei News has a positive view of BOE’s progress, Chinese media remains more cautious, pointing out that its technology still lags behind Korean manufacturers.
The Global Times reported on the 23rd that the rising demand for OLEDs has made them a strategic resource for Chinese phone makers. Companies like BOE, Huaxing Optoelectronics, and Huiguang are all competing to capture this growing market. In December last year, Hefei Optoelectronics launched its sixth-generation OLED line in Shanghai. BOE also invested in a sixth-generation flexible OLED line in Mianyang, Sichuan. Industry estimates suggest that domestic manufacturers have poured hundreds of billions into OLED development, but new capacity may not be stable until 2020.
Zhang Baizhe, a professor at Tsinghua University and a display technology expert, noted that while Chinese factories are investing heavily, OLED technology is highly complex. Samsung has been developing it for over a decade, and it took several years to improve yield rates. Chinese manufacturers must be fully prepared for the challenges ahead.
As the competition intensifies, the future of OLED in the smartphone market looks increasingly promising—and BOE is determined to play a key role in shaping it.
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