China's display industry rises on global stage

An employee of a tech firm in Huangshi, central China's Hubei province, manufactures light-emitting diode (LED) displays. [Photo/Zhou Wei]

Recent data from the China Center for Information Industry Development show that China now accounts for 55 percent of the global market for display panels and 43 percent for display materials, ranking first worldwide in both categories. The total output of China's display industry represents nearly half of the global market.

As a key pillar of advanced manufacturing, China's display industry began to take shape in the late 20th century. Just over a decade ago, however, the country remained heavily reliant on imports of advanced chips and high-end display panels -- the latter ranking as China's fourth-largest import category at the time. Chinese domestic manufacturers faced significant challenges, lacking bargaining power in a sector dominated by a few multinational firms. High costs and supply constraints were common, with local companies often forced to queue for access to critical components.

Through over two decades of sustained development, China has transitioned from a latecomer to a global leader in display technology. Accelerated breakthroughs in core technologies and the rise of globally competitive domestic firms have been instrumental in driving this transformation.

Strategic policy support

One major factor behind this rise has been strategic, forward-looking policymaking. In 2009, the Chinese government launched a restructuring and revitalization plan for the electronic information industry, specifically targeting bottlenecks in the emerging display sector. That same year, construction began on the Chinese mainland's first independently designed and built 8.5-generation panel production line.

Since then, a series of industrial policies, including the 12th five-year plan for the electronic information manufacturing industry, the 2014-2016 action plan for the new display innovation, and the 2019-2022 ultra-HD video industry development plan, have sustained the industry's momentum and positioned it for high-speed growth.

Technological foresight and innovation

Another driving force is the industry's strategic foresight and long-term commitment to independent innovation. The display sector's evolution has seen multiple technological pathways, leading to industrial upgrading and the elimination of outdated technologies. Given the capital-intensive nature of the sector, even minor miscalculations can result in significant losses.

Recognizing the inevitability of technological transformation early in the development of liquid-crystal technology, Chinese companies proactively accumulated critical know-how. As the industry pivoted toward organic light-emitting diode (OLED) and next-generation technologies, companies adopted a pragmatic "dual-track" approach, investing in parallel development paths with considerable success.

Workers at a display manufacturing company in Ma'anshan, east China's Anhui province, manufacture liquid-crystal (LCD) screens. [Photo/Wang Wensheng]

Independent innovation remains central to the industry's progress. During the 14th Five-Year Plan period (2021-2025), research and development (R&D) investment in the sector has grown at an average annual rate of 18 percent, and Chinese companies accounted for 42 percent of global patent applications in this sector. They have also established competitive advantages in key areas such as quantum-dot materials and printed display technologies.

Major players such as BOE Technology Group and TCL China Star Optoelectronics Technology (TCL CSOT) maintain R&D investment ratios above 7 percent. BOE consistently ranks among the global top 10 in international patent filings (PCT), underscoring its innovation capacity. These innovation efforts have accelerated breakthroughs in frontier technologies, including micro-LED and quantum-dot displays.

China's innovation is not confined to end products but extends across upstream equipment and materials. The country has developed ultra-thin float-glass substrates for high-generation OLED production, and over 60 percent of critical materials, such as polarizers and photoresists, are now domestically sourced. Market shares for Chinese domestically produced evaporation machines and lithography equipment have risen from zero to 35 percent. These advances are enhancing the resilience and security of China's industrial chain and supply chain.

Light-emitting diode (LED) displays are manufactured in a workshop of a display technology company in east China's Jiangsu province. [Photo/Zhao Qirui]

Domestic demand and application scenarios

The huge Chinese market and diverse application scenarios have also fueled the sector's expansion. The evolution of domestic smartphone designs, rapid growth in new energy vehicles, continuous innovation in wearable technology, and the development of AI, the Internet of Things, and cloud computing, are all driving demand for advanced display technologies.

Industry estimates suggest that although display panels are not the highest-cost components in end-use devices, their contribution to downstream value creation can be four to five times their production value.

By 2025, the output value of China's new display industry is projected to approach 800 billion yuan ($112.55 billion). From relying on foreign technology to becoming a source of global innovation, the industry's transformation illustrates China's accelerating progress toward scientific and technological self-reliance and high-level innovation.