The LED industry in mainland China has developed rapidly in the past decade. Under the situation that the growth rate of production capacity exceeds the growth rate of demand, the LED industry has entered a severe structural adjustment. As China's mainland has new capacity to join this year, it is expected that the oversupply pressure of the LED industry will continue in 2019. At present, the industry is more optimistic about the development of small-pitch LED display screens, Mini LEDs, automotive lighting and other related applications, among which, the Mini LED, which marks the new generation display technology, is particularly eye-catching.
Most of the LED supply chain manufacturers in mainland China and Taiwan have invested in the development of Mini LED related products and laid out the layout for Micro LED technology. In mainland China, in addition to Sanan Optoelectronics, Huacan Optoelectronics, Guoxing Optoelectronics, Jingtai Optoelectronics and other LED manufacturers have already flagged in the field of Mini LED and Micro LED. The mainland panel leader BOE also announced the cooperation with American Rohinni at the beginning of this year. A joint venture will be established and the Micro LED solution will be jointly developed in the future.
Taiwanese factory accelerates the layout of MiniLED, and its contribution is increasing in 2019
In Taiwan, LED epitaxial/grain giants Yuanyuan Optoelectronics officially mass-produced Mini LEDs for esports display and esports panel backlights in the second half of 2018, and introduced RGB for ultra-small-pitch display screens. Mini LED, it is expected that the shipment volume will be enlarged after the second quarter of this year, and the contribution from Mini LED products is expected to increase in the second half of the year.
The panel factory AUO's LED factory Longda Electronics also began mass production of Mini LEDs in the third quarter of 2018. In the beginning, it also mainly used e-sports display and notebook computer screens. This year, it will further introduce new products. The esport application product expands the backlight of the car panel and accelerates the commercialization of the RGB Mini LED display module. It is estimated that the proportion of revenue of Mini LED products may reach 5% or higher this year.
The LED manufacturers that also have the resources of the Group's panel factory also have the LED chip factory Guangsheng Technology and LED packaging factory Rongchuang invested by Innolux. Among them, after the completion of the re-election of the Dong Jian in June 2018 and the entry of Rongchuang Energy Technology, a subsidiary of Hon Hai Group, Guangxun has accelerated the development of Mini LED/Micro LED. It is reported that the related products have been shipped in small quantities before the end of 2018. Rongchuang's new Mini LED benefits are expected to begin fermentation in the first half of 2019.
In addition, LED packaging factory Hongqi has a certain business foundation in the past LED display screen, so the company is not absent in this wave of Mini LED development trend. Its Mini LED backlight enters the e-sports display supply chain, and the display screen application uses the self-developed 4 in 1 RGB Mini LED to attack the high-end commercial display screen. It is estimated that the proportion of Mini LED products in revenue this year is expected from last year's 3 Within %, increase to over 10%.
The backlight/display screen is attacked, and the development of MiniLED is attracting attention.
The Mini LED can be applied to both the panel backlight and the display screen, and is regarded as a transition technology that may connect the new generation display technology Micro LED, so its development has attracted much attention. At present, the definition of Mini LED and Micro LED is still inconsistent, but the general LED grain size is about 1 mm (mm). The so-called Mini LED grain size is between 100-200 microns (micrometer, μm; 1 mm mm). Between 1,000 micrometers μm), the size of the Micro LED is at least 100 μm, and some manufacturers believe that the grain size should be less than 60 μm.
When the Mini LED is used as a panel backlight, it can realize multi-area backlight independent control, which can improve the contrast and brightness of the LCD screen and optimize the visual experience. Although the cost is high at this stage, in the high-end special application market such as high-end e-sports display and e-sport notebook computer, relevant products have been introduced since the end of 2018. It is expected that more new models will be adopted in the second half of 2019.
When the Mini LED is used to display the screen, it is equivalent to a small-pitch LED display screen with smaller LED particles and smaller spacing. The small-pitch LED display screen has the advantages of no seams, high brightness, etc. In recent years, various large-size public display billboards and commercial display applications have developed rapidly, and Samsung has also launched a 406-inch super LED movie screen.
Policy support, China's LED industry grows rapidly.
Thanks to the government's MOCVD subsidies and the ten-city project, the LED industry in mainland China has experienced rapid growth in the past decade and the scale of production capacity has continued to rise. According to China's CSA National Semiconductor Lighting Engineering R&D and Industry Alliance data, the total number of MOCVD machines in China in 2018 reached more than 1,900, an increase of more than 200 units in 2017, and the annual growth rate of machine numbers exceeded 10%. Due to the continued procurement of equipment in 2018, it is estimated that there will be double-digit growth in China's LED production capacity in 2019.
In addition, according to LEDinside Research Center (LEDinside), the total capacity of China's LED Lei chip manufacturers at the end of 2018 reached 11.2 million pieces/month (equivalent to 2-inch LED chips), an annual increase of more than 30%. It is expected that in 2019, China's LED LED chip production capacity will increase by another 1.4 million pieces / month (equivalent to 2 inches), an increase of more than 10%. The continued increase in production capacity in mainland China will continue to pressure LED prices.
With the large-scale expansion of production capacity, capacity growth exceeding demand growth, rising inventory of manufacturers, and continued decline in LED prices, the industrial structure has been adjusted. Most of the industry players are facing a severe survival test, actively seeking new applications for the next generation, and expecting effective de-construction.Inventory, restart life.