TCL Corporation, the world’s third-largest television maker, said on Tuesday it plans to build a new production line for 8K and organic light-emitting diode (OLED) screens, at a cost of 42.7 billion yuan (US$6.71 billion).

The new production line, to be built in southern China’s Shenzhen city, where the company is also listed on the local stock exchange, will have the capacity to manufacture 90,000 screens of the latest generation ultra high definition variety each month. It will produce and sell 65-inch, 70-inch and 75-inch 8K resolution screens, as well as 65-inch and 75-inch OLED television screens, the company said in a Chinese-language announcement filed to the Shenzhen Stock Exchange. The company plans to achieve mass production in March 2021.

With this move, the company aims to “follow the trend of semiconductor display technology, and seize the opportunity of a rapidly growing market for display screens of large sizes and ultra high definition”, according to the Huizhou, Guangdong-headquartered television maker.

The company’s Shenzhen unit will partner with a government-backed development fund to boost registered capital in a TCL semiconductor subsidiary, which will set up the new production line with 20.3 billion yuan, according to the announcement.

TCL expects the demand for 8K products to soar after 2018, as the television screen market increasingly seeks bigger screens and higher resolution displays. The completion of the new project will be able to satisfy the demand in China, the world’s biggest 8K consumption market.

The company announced a record sales volume for 2017, selling more than 23.2 million liquid crystal display (LCD) televisions for the year, which represents 16.4 per cent year-on-year growth. At the CES electronics show in Las Vegas in January, TCL announced it had completed the construction of its US$7.09 billion G11 manufacturing facility for the latest generation of flat panels, and that it would boost the production of 65-inch and 75-inch LCD screens.