(Yicai Global) Nov. 30 -- Lianchuang Electronic Technology plans to invest CNY1 billion (USD144 million) to build a factory for next-generation touch displays under expectations that China will become the world's largest market for the technology.

The Jiangxi-province based firm plans to produce 30 million units a year, including flexible active matrix organic light-emitting diodes, it said in a statement yesterday. It will build the plant in Liangjiang New Area in Chongqing, a central government-run municipality in southwestern China.

Liangchuang, which hopes to open the production line in December 2020, believes that China is destined to become the world-leading market for AMOLED products, the statement added.

AMOLED displays are commonly used in consumer electronics, like smartphones, laptops, televisions and even smart watches. Apple switched out liquid crystal displays for AMOLED screens for the first time when it made the iPhone X, and the global market for the technology is set to reach nearly USD20.7 billion by 2022, according to Research and Markets.

Liangchuang will team up with an investment fund affiliated to the local government to inject cash into Chongqing Liangjiang Lianchuang Electronics, which will run the plant. The investment will take the subsidiary's registered capital to CNY1 billion from CNY300 million, knocking Lianchuang's stake down to 60 percent from 100 percent.

Chinese display maker Boe Technology Group will make the panels for the AMOLEDs, and supply volumes will be guaranteed, according to the statement. Boe has several AMOLED panel production lines in southwestern China, including Chongqing and Chengdu.

Editor: James Boynton