- Smoky Mountains Technology launches integrated manufacturing line in Zhejiang
- Move signals shift of Micro LED from lab development to commercial scale
Smoky Mountains Technology (西湖烟山科技), a Hangzhou-based startup specializing in optical components, has started operations at a new Micro LED production facility in eastern China, marking the launch of what the company says is the world’s first fully integrated 8-inch silicon-based gallium nitride Micro LED manufacturing line spanning epitaxy to advanced packaging.
The project, located in Deqing, an hour’s drive north of Hangzhou, officially entered production on May 22 and is expected to produce up to 3 million Micro LED display devices annually.
The launch represents a milestone for China’s Micro LED industry, which has long faced bottlenecks in scaling manufacturing beyond laboratory-level development.
Next-gen display technology
Founded in 2022 by Dr. Kong Wei (孔玮), a researcher at Westlake University, Smoky Mountains Technology focuses on Micro LED display chips and manufacturing technologies.
Micro LED is widely viewed as the next-generation display technology because of its high brightness, low power consumption and long lifespan.
The technology is increasingly used in augmented and virtual reality wearables, while also drawing interest for applications in optical communications and photonic computing.
Cost reductions of over 70%
The company said its core team has developed capabilities across semiconductor interface processing and compound material growth, including metal-organic chemical vapor deposition, semiconductor thin-film integration, hybrid bonding and vertically stacked RGB structures.
Unlike conventional Micro LED manufacturing routes based on 4-inch sapphire substrates, Smoky Mountains said it has achieved mass production using 8-inch silicon substrates, reducing per-wafer costs to less than 30% of traditional approaches.
The production line uses an all-gallium nitride vertical stacking architecture, which the company said improves light extraction efficiency and connectivity while lowering manufacturing barriers and production costs.
The production line is expected to generate more than 300 million yuan ($44.24 million) in annual revenue, with the 8-inch platform capable of supporting future upgrades to 12-inch manufacturing without major process changes, the startup said.
Beyond VR/AR wearables
Smoky Mountains Technology has already expanded into consumer electronics, automotive displays and direct-view display panels.
In micro-display applications, its products are used in AR glasses and compact projection modules, with customers including AVIC (中航集团), BYD, Sunny Optical Technology (舜宇光学), Goertek (歌尔股份), Rokid and RayNeo (雷鸟创新).
In automotive displays, the company has entered BYD’s supply chain, while in large display panels it has established partnerships with manufacturers including Samsung Electronics, BOE Technology (京东方), TCL China Star Optoelectronics Technology (TCL华星) and Tianma Microelectronics (天马微电子).
Funding journey
The company signed an agreement with Deqing authorities in January 2025 to establish the Micro LED chip project.
It later raised nearly 100 million yuan in a Pre-Series A funding round backed by Shenzhen Capital Group, Ivy Capital, Moganshan Fund and Lenovo Capital.
In April 2026, the company closed a Series A financing round led by Haiwang Capital, with participation from Orient Renaissance Capital and existing shareholders.
