(Yicai) June 21 -- Micro organic light emitting diode panel maker Semiconductor Integrated Display Technology put its first production line for 12-inch micro OLED displays, which have a much higher pixel density than traditional OLED screens, into trial production today.

The first phase will produce 6,000 panels a month for use in the virtual reality, augmented reality and mixed reality fields, said SidTek, which is based in Wuhu, eastern Anhui province, where the new factory is also located.

The first stage will begin mass production in August, and the second production line is scheduled to be finished by 2027, Chairman Zhao Zhengxiao said.

Altogether there are three phases costing CNY6 billion (USD826.3 million). Construction of the factory started in 2020 based on the company’s experience in its pilot plant 8-inch display production line.

SidTek invested CNY2.3 billion (USD316.7 million) in brand-new equipment and an automated production system in the first phase, said Virtual Chief Marketing Officer Yu Ningning, who is also general manager at SidTek China's marketing division, told Yicai. This result in more investment than other similar projects being built in China.

Artificial intelligence technologies have injected vitality into the extended reality industry, including VR, AR and MR, said Ouyang Zhongcan, an academic at the Chinese Academy of Sciences. Micro OLED display makers will benefit from AI technologies which can give users better immersive experiences.

Global demand for micro OLED screens will rise to 21 million pieces by 2028, creating huge market potential, according to market research firm Sigmaintell’s prediction.

Editors: Tang Shihua, Kim Taylor