The LCD-to-OLED transition is spreading from smartphones to IT devices, and Gen.8.7 investment is accelerating with it. Both BOE and Samsung Display (SDC) began mass-producing OLED NBPC (Notebook PC) panels this year on Gen.8.7 (2250x2620mm) substrates using the Fine Metal Mask (FMM) method.

BOE held a mass production ceremony at its B16 fab in June, hosting Lenovo, ASUS and Acer. BOE's ceremony preceded SDC's by roughly three weeks, giving the Chinese panel maker a claim to the world's first Gen.8.7 IT OLED mass production. SDC followed on July 2 at its A6 fab, marking the start of mass production for the Apple MacBook Pro and announcing an investment plan of KRW 67 trillion ($46.5 billion) through 2040.

On product complexity and volume, however, we expect SDC to hold the technological edge.

Gen.8.7 IT OLED Fab Roadmap, Capacity & Schedule

While FMM-built OLED dominates the smartphone market, two rival deposition technologies will compete for the IT display space.

According to Jayden Lee, Associate Director at Counterpoint Research, “China's Visionox and CSOT also committed to invest before semiconductor prices rose. Rising memory prices have pushed NBPC prices up, and at that level an OLED NBPC is arguably worth the premium over an LCD one delivering more value to consumers at already elevated price points. So, we expect more premium brands to seek out higher value-added panels.”

OLED Takes 73% of Display Equipment CAPEX in 2026 as Total Spend Rises 57%

Mr. Lee, further noted, “To date, a total of 75K sheets/month of investment has been confirmed in Gen.8.7 substrate size, which converts to roughly 150K sheets/month in Gen.6 terms. Whether that capacity can be filled remains an open question. But early OLED smartphones faced the same yield issues and price resistance, and prices came down as processes and yields stabilized. Utilization may stay low at each panel maker for now, but technology competition will separate the survivors from the laggards. When it does, we expect the IT OLED market to stabilize, just as it did in smartphones.”

According to Counterpoint Research’s Quarterly Display CAPEX and Equipment Report - Q3 2026, total Display Equipment spending in 2026 is projected to increase 57% YoY. OLED spending is set to rise 74% and LCD 20% over 2025. Gen.8.7 will account for 61% of total OLED investment in 2026. On the OLED side, CAPEX will be led by Visionox's V5 and CSOT's t8 fabs, while LCD investment will be driven primarily by Tianma’s TM19 Phase 2.

According to our analysis and supply chain checks:

• Gen.8.7 IT OLED is starting with FMM, but Visionox's photo-patterned OLED and CSOT's RGB inkjet are both being readied for mass production as early as next year.
• Visionox began mass production of smartwatches at its Gen.6 (1500x1850mm) V3 fab early this year.
• CSOT has been mass-producing NBPCs since June of this year at its Gen.5.5 (1300x1500mm) t5 fab using equipment relocated from JOLED.
• HKC, which held an IPO at the end of June, is reviewing G6 full-size FMM OLEDs.
• LG Display is verifying the reliability of photo-patterned OLEDs through R&D investment.

With all these developments, Mr. Lee, highlighted, “With panel makers now building products on methods other than smartphone-era FMM, the open question is which wins on color gamut, lifespan, and price in the future.”

About Counterpoint Research’s Display Equipment Spending Service

Counterpoint Research’s Quarterly Display Capex and Equipment Market Share Report tracks the technologies utilized across the display equipment sector, covering OLED, LCD and Micro-OLED fab schedules, OLED and LCD capacity, and LCD, OLED and Micro-OLED equipment market sizes, forecasts and shares for 80 different segments. Additionally, all design wins and units by fab by equipment type are tracked, with quarterly revenues provided for over 130 different display equipment suppliers. The Excel report is paired with an insights report providing context around the numbers, supply chain insights and typical process flows for each major process. Contact [email protected] to learn more.

About Counterpoint Research

Counterpoint Research is a global market research firm specializing in products across the technology ecosystem. We advise a diverse range of clients – from smartphone OEMs to chipmakers and channel players to Big Tech – through our offices located in the world's major innovation hubs, manufacturing clusters and commercial centers. Our analyst team, led by seasoned experts, engages with stakeholders across the enterprise – from the C-suite to professionals in strategy, analyst relations (AR), market intelligence (MI), business intelligence (BI), product and marketing – to deliver services spanning market data, industry thought leadership and consulting. Our core areas of coverage include AI, Automotive, Consumer Electronics, Displays, eSIM, IoT, Location Platforms, Macroeconomics, Manufacturing, Networks and Infrastructure, Semiconductors, Smartphones and Wearables. Visit our Insights page to explore our publicly available market data, insights and thought leadership, and to understand our focus, meet our analysts and start a conversation.

Follow Counterpoint Research

Twitter
LinkedIn