Mini LED demand is expected to explode this year
The next generation of TV backlight technology, Mini LED, Micro LED, and quantum dot technology, are all supported by relevant investment manufacturers. However, the situation is getting clearer and Mini LED is being accepted by mainstream TV manufacturers. China TCL recently released 4K Mini LED. TV, intends to seize the opportunity. According to Liu Di, an analyst at the research institute Ovi Revo, global shipments of Mini LED TVs are expected to reach 4 million units this year. Mini LED TVs will usher in a high-speed growth period in the next five years. In the past two years, as LED lighting, the largest application field of LEDs, has entered a low point, relevant industry chain companies in China have fallen into a dilemma of overcapacity. However, as the demand for Mini LEDs increases sharply, it is expected to bring new vitality and vitality to the industry.
It is understood that the mass production of Mini LEDs is closely related to Apple and has been promoting the commercialization of Mini LEDs. This year, Apple, Samsung and other international brands are planning to launch products such as tablets and TVs that are fully equipped with Mini LED backlight displays. The relevant procurement has been launched in the fourth quarter of 2020 ahead of schedule, which has caused a surge in demand for Mini LED chips; Due to the shortage of stocks, some LED chip manufacturers have gradually increased the prices of chips for non-core customers and low-margin products, with an estimated increase of about 5%~10%.
Wang Fei, an LED analyst at TrendForce, a research institution, believes that the chip price increase is mainly due to the capacity crowding effect brought about by the outbreak of emerging application demand, which is expected to be resolved within half a year. In addition, the concentration of the LED industry chain has increased and the bargaining power of suppliers has increased, which has led to price increases. Wang Fei also pointed out that if a 65-inch LCD TV is equipped with Mini LED, the cost will increase by about RMB 2,000. However, compared with the currently widely used OLED, the cost of Mini LED has more room for reduction. As the sales scale expands, the price of Mini LED will also be more competitive.
Like LEDs, the Mini LED industry chain includes materials, chips, modules, equipment, and downstream application terminals such as computers and TVs. In recent years, Chinese listed companies have increased their Mini LED investment. For example, Sanan Optoelectronics has Mini LED production capacity in Fujian and invested RMB 12 billion in the Mini/Micro LED chip industrialization project in Ezhou City, Hubei Province.
The main chip manufacturers in the upstream of the Mini LED industry chain include Sanan Optoelectronics, HC Semitek, and Qianzhao Optoelectronics. Sanan Optoelectronics has revealed that the Xiamen subsidiary and Samsung Electronics have signed an "advance payment agreement". The two parties will establish a long-term business relationship to provide the latter with chips for display screens. At present, Mini LED chips have been supplied to Samsung in batches. Other customers have some under verification. In terms of equipment, Han's Laser, Northern Huachuang, China Micro Semiconductor and Xinyichang will all benefit from Mini LED's high volume.
In addition, Mini LED midstream modules and related packaging and testing plants will also benefit. Related companies include Zhaochi, Hongli Zhihui, Ruifeng Optoelectronics, National Star Optoelectronics, Leyard, etc. Among them, Zhaochi Co., Ltd. has relevant technology and capacity reserves for Mini LED chips and packaging products. Among them, Mini LED chips have been produced in small batches, and Mini LED packages have continued to be supplied to domestic and foreign brand manufacturers. Hongli Zhihui has signed the contract for the second phase expansion of Mini LED and is now in the construction preparation stage. The current capacity after the first phase expansion cannot meet the demand of the intended order. In addition, the main products of Jufei Optoelectronics are backlight LED devices and lighting LED devices. AUO is a supply chain partner, and Mini LED products are in the mass supply stage.