Opto Tech spokesperson Eric Guo said that the display will measure over 6,000 square meters (about 200 meters in length and 30 meters in width).
The display is expected to cost US$20 million, and construction will be finished in June 2006.
The display, to be situated at the International Trade Center in Beijing, will be used to promote the 2008 Beijing Olympics, Guo said.
In addition, other major cities in China (such as Nanjing) are likely to start constructing similar displays, and Opto Tech expects huge LED displays to contribute an increasing amount to its sales.
The probable holder of the title of world's largest LED display is Viva Vision at the Fremont Street Experience in downtown Las Vegas.
Unveiled earlier this year, Viva Vision contains 12.5 million LEDs and measures 120 feet wide by 1400 feet long (37 x 427 m).