In China’s high-tech manufacturing landscape, regional development operates like a carefully orchestrated dance between corporate ambition and government planning. Provincial and municipal governments actively compete to attract cutting-edge technology investments, offering compelling packages of land grants, tax incentives, and infrastructure support. For display technology companies like Xitai (also know as SIDTEK), this creates a unique opportunity to strategically distribute different segments of their production chain across multiple regions, maximizing both operational efficiency and government incentives.
This regional approach takes full advantage of China’s varied industrial ecosystem. Each province brings distinct strengths to the table, some offer established supply chains, others provide pools of specialized technical talent, while certain regions deliver cost advantages or strategic positioning. Companies that successfully navigate this landscape can build remarkably resilient and cost-efficient manufacturing networks.
The recent signing of Xitai Technology’s 4 billion yuan ($570 million) Micro OLED project in Mianyang represents a textbook example of this approach. The announcement this week marks another strategic expansion for Xitai, which is methodically constructing what industry observers might call a manufacturing constellation”across three key Chinese regions. Xitai Technology recently completed a Series A financing round, raising over 1 billion yuan ($140 million), which is also being used for the construction and operation of this production line
The Mianyang facility in Sichuan Province will focus on 12-inch Micro OLED semiconductor display production, addressing a critical technology gap in the region’s display portfolio. Prior to this investment, Mianyang had established capabilities in LCD, MiniLED, and AMOLED technologies, but lacked the silicon-based OLED component vital for next-generation applications. When fully operational, this facility will attract over 2,000 technical specialists to the region.
The Mianyang facility aims to produce Micro OLED displays with pixel densities exceeding 4,000 PPI and brightness levels reaching 10,000 nits, specifications that directly address persistent challenges in VR motion clarity and AR outdoor visibility.
This Mianyang facility doesn’t exist in isolation, however. It forms part of a sophisticated three-region strategy that includes significant investments in both Meishan (also in Sichuan Province) and Wuhu (in Anhui Province). The Meishan operations focus on module production with a capacity of 6,000 wafers monthly. A complementary module project launched in May 2024 will produce 3 million high-resolution modules annually, directly serving downstream device manufacturers.
Meanwhile, in Wuhu, Xitai has established what appears to be its technological foundation. With a total planned investment of 6 billion yuan ($857 million) across three development phases, the Wuhu facility achieved significant milestones throughout 2024 successfully producing both monochrome and full-color Micro OLED products. The facility boasts equipment from suppliers like ASML, TEL, and Applied Materials. Phase one of this facility is scheduled for mass production by August 2025.
The strategic value of this three-region approach becomes evident when examining the vertical integration it creates. Wuhu appears focused on pioneering R&D and initial production validation, Mianyang on core manufacturing scale, and Meishan on module integration and customer-specific customization. This distribution creates natural redundancies, technological synergies, and allows Xitai to benefit from the distinct advantages of each region.
With an explicit goal of breaking foreign technology monopolies in the Micro OLED space, Xitai exemplifies China’s broader strategic approach to display technology. Their aggressive regional expansion, bolstered by national manufacturing funds and provincial investments, signals China’s commitment to establishing technological self-sufficiency in advanced display technologies. Developments like these merit close attention. They represent not just regional manufacturing stories, but emerging shifts in the competitive landscape of next-generation display technologies.
