(Yicai Global) Aug. 9 -- Visionox Technology, a major Chinese developer of organic light-emitting diodes, plans to invest CNY11.2 billion (USD1.6 billion) in a sixth-generation flexible active-matrix OLED factory in Guangzhou to meet rising demand from smartphone display makers in the Pearl River Delta.

Visionox and the city's Zengcheng district will set up a project firm with a registered capital of CNY5.6 billion, the Kunshan-based company said in a statement yesterday. A state-owned firm designated by the local government and an investment entity appointed by Visionox will hold about 82 percent and 18 percent of the JV's equity for an investment of CNY4.6 billion and CNY1 billion respectively.

The project will research and develop, produce and sell various high-end AMOLED modules, the statement said, without giving details of the output capacity, expected construction period or operational start date.

The Guangzhou location will help Visionox form long-term and stable relations with major clients in the Pearl River Delta region, which is home to many smartphone makers, the statement added. Phone producers unveiled plans for foldable handsets at the start of this year, with Xiaomi and ZTE, both high-tech firms based in the region, using Visionox's flexible AMOLED displays in their gadgets.

Originating in Tsinghua University, Visionox has production lines for AMOLED panels in the eastern city of Kunshan and Guan county in northern China, and is building new ones in Hefei.