On March 25, silicon-based OLED microdisplay manufacturer Shiya Technology was officially listed on the Shanghai Stock Exchange Science and Technology Innovation Board. The opening price was 50 yuan, an increase of 120.46%, and the market value exceeded 50 billion yuan. However, Shiya Technology still faces challenges such as short-term oversupply in the silicon-based OLED display industry, higher costs, competition with Micro OLED, and performance losses.
"Currently, there are many production lines for silicon-based OLEDs. Chinese companies are gradually breaking Sony's monopoly in the field of silicon-based OLEDs. However, there is still a long way to go from improving product specification capabilities to expanding the proportion of leading brand customers." An industry insider told China Business News.
Research firm Omdia predicts that the near-eye display market for augmented reality (AR), virtual reality (VR) and mixed reality (MR) will reach US$1.2 billion in 2026, a year-on-year growth of more than 200%.
This also triggered a new round of investment boom. In December last year, the main factory building of Xita Technology's 12-inch silicon-based OLED microdisplay industrial park project in Nanchong, Sichuan was capped; in February this year, Yunguang Technology started construction of its 12-inch ultra-high-definition silicon-based OLED microdisplay production base in Nanjing. Both projects are expected to be put into production or mass production next year.
The listing of Shiya Technology raised 2.268 billion yuan, which will be used for ultra-high-resolution silicon-based OLED microdisplay production expansion and other projects. Its customers include ByteDance, Shadowstone Innovation, Thunderbird, etc. Shiya said that there is a risk that the new production capacity formed by future investment projects will not be digested in time.
"Silicon-based OLED is still relatively expensive." Cui Haitao, chairman of Gudong Intelligent, said that a silicon-based OLED screen costs about US$40, plus the cost of optical waveguide components, the total cost of the near-eye display components is more than 700 yuan, which is a high proportion of the cost of monocular display AR glasses with a unit price of two to three thousand yuan.
Last year, the near-eye display industry saw a sharp decline. Omdia's research report shows that revenue from VR, AR and MR near-eye displays will drop from US$717 million in 2024 to US$392 million in 2025, a drop of 45%. This year, with expectations that Meta and others will soon launch a new generation of MR equipment, it is expected that the AR, VR and MR markets may recover in 2026.
At the same time, competition among near-eye display technology lines is also intensifying. Yu Bin, research director of TrendForce, told China Business News that currently silicon-based Micro LED can satisfy AR glasses with a single green display. Full-color display AR glasses currently mainly use silicon-based OLED. Judging from the new AR glasses released this year, there are more monochrome displays.
Performance losses are another challenge. In the first half of 2025, Shiya achieved revenue of 150 million yuan and a net profit loss of 123 million yuan attributable to the parent company. Zhou Hua, chief analyst of CINNO Research, analyzed to reporters that Shiya's current losses are mainly affected by depreciation of the production line (about 300 million yuan per year) and R&D investment accounting for more than 80% of revenue.
