LED Industry Enters Structural Adjustment, Mini LED Become Development Focal Point

- Mar 07, 2019-

The LED industry in mainland China has developed rapidly in the past decade. Under the circumstance that the growth rate of production capacity exceeds the growth rate of demand, the LED industry has fallen into a severe structural adjustment.

Due to the addition of new capacity in mainland China this year, the oversupply pressure in LED industry is expected to continue in 2019.

At present, the industry is optimistic about the development of small spacing LED display screen, Mini LED, car lighting and other related applications, among which, the Mini LED which marks the new generation of display technology is particularly eye-catching.


Most LED supply chain manufacturers in mainland China and Taiwan have invested in the technology development of Mini LED related products and laid out Micro LED technology in advance.

In mainland China, besides SAN 'an optoelectronics, hua can optoelectronics, guoxingguang electric, jingtai optoelectronics and other LED manufacturers have already planted flags in the field of Mini LED and Micro LED. Boe, the leading panel manufacturer in mainland China, announced to establish a joint venture with Rohinni, an American company, earlier this year, and will jointly develop Micro LED solutions in the future.


Taiwan plant to accelerate the layout of Mini LED, 2019 contribution gradually increased


In Taiwan, LED epitaxial wafer photoelectric/grain companies in the second half of 2018 the formal production for e-sports and e-sports display panel Mini LED backlight, display screen and can be used in small spacing of RGB LED, Mini is expected in the second quarter of this year after the shipment is expected to enlarge scale, from the contribution of the Mini LED products is expected to improve in the second half year.


Panel manufacturer au optronics LED manufacturer londa electronics also started mass production of Mini LED in the third quarter of 2018. At the initial stage, we will focus on e-sports displays and notebook computer screens. This year, we will further launch new products.

Mini LED products this year is expected to share revenue may come to about 5 percent or higher.


Those who have the same resources of the group panel factory also have the LED technology of LED grain factory and LED sealing factory rongchuang with the investment of qunchuang optoelectronics.

Among them, the light hong has accelerated into the research and development of Mini LED/Micro LED after the election of directors and election of hong hai group's rongchuang technology in June 2018, and the related products have been shipped in small quantity before the end of 2018.

The new Mini LED product benefit of rongchuang is expected to start to ferment in the first half of 2019.


In addition, LED packaging factory hongqi in the past in the LED display screen has a certain business foundation, so the company in this wave of Mini LED development trend, is not absent.

Its Mini LED backlight into the supply chain of e-sports displays, display screen applications with their own development of 4 in 1 RGB Mini LED first attack advanced commercial display screen, it is estimated that this year Mini LED products accounted for less than 3% of the revenue last year, is expected to increase to more than 10%.


Backlight/display screen attack, Mini LED development attracted attention


Mini LED can be used as a backlight on the panel or as a display screen. It is also seen as a transition technology that may connect with the new generation of display technology, Micro LED. Therefore, its development has attracted much attention.

At present, there is no agreement on the definition range of Mini LED and Micro LED in the industry. However, according to the general LED grain size of about 1mm (mm), the so-called Mini LED grain size is between 100-200 micrometer (m).

Micro leds have a grain size of at least 100 microns to the micron between 1 mm mm and 1,000 microns to the micron.


When Mini LED is used as the panel backlight source, 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 current cost is high, but in the high-end e-sports display, e-sports notebook computer and other high-end special application market, since the end of 2018 has been introduced related products, it is expected that in the second half of 2019 there will be more new models used.


When Mini LED is used for display screen, it is equivalent to LED particle and smaller spacing LED display screen.

Small spacing LED display screen with no patchwork, high brightness and other advantages, in recent years in a variety of large size public display billboards and commercial display applications have been rapid development, samsung also launched 406 inch super LED movie screen.


With policy support, the LED industry in mainland China is growing rapidly


Thanks to the government's MOCVD subsidy and the policy promotion of 100,000 lamps project, the LED industry in mainland China has experienced rapid growth in the past decade, and the scale of production capacity has been continuously increased.

According to the data of China CSA national semiconductor lighting engineering research and development and industry alliance, the total number of MOCVD machines in mainland China in 2018 reached more than 1,900, more than 200 more than in 2017, and the annual increase rate of the number of machines exceeded 10%.

Due to the continued procurement of equipment in 2018, China's LED production capacity is estimated to have a double-digit growth in 2019.


In addition, by the end of 2018, the total output of Chinese mainland LED lei chip manufacturers will reach 11.2 million chips per month (2 inch lei chips), an annual increase of more than 30 percent, according to LEDinside.

China is expected to add another 1.4 million LED lei chips per month (2 inches) in 2019, still an increase of more than 10 percent.

China mainland capacity continues to increase, will make LED price pressure continued.


As the scale of production capacity expands significantly, the growth rate of production capacity exceeds the growth rate of demand, manufacturers' inventory increases, LED prices continue to fall, and the industrial structure is in adjustment, most manufacturers in the industry are facing a severe survival test, actively looking for the next generation of new applications, hoping to effectively reduce inventory and restart vitality.