BOE Technology Group, a leading supplier of display products and solutions, started building what will be the world's largest production site for manufacturing mobile device display modules in Qingdao, Shandong province, on Wednesday.

The production site is expected to improve BOE's manufacturing capacity and core competitiveness in mobile display products and help the city of Qingdao build an important national electronic information industry base, as well as a high-end R&D and manufacturing base, according to the company's website. A total investment of 8.17 billion yuan ($1.27 billion) is expected.

The project is located in the Qingdao West Coast New Area, the ninth State-level economic development zone in China.

The facility will manufacture display panels for mobile terminals such as smart phones, tablet PCs and laptops, the company said, adding that production of complete mobile phones and other devices is planned for the future.

The first batch of display panels is expected to be unveiled at the end of next year. The production site will reach its full capacity in March 2024, the company said.

It quoted data from Beijing-based market research firm Sigmaintell, saying that 500 million smartphone display panels were produced worldwide from July to September last year, an increase of 7.4 percent year-on-year.

BOE said its mobile display components have gone into mass production, and the new production site in Qingdao will further meet market needs for display panels of medium and small mobile devices around the world.

The new factory is expected to attract well-known manufacturers in the industrial chain and encourage them to settle their units in Qingdao, as a new driver of the local economy and a job creator, the company said.