Use Eight Characters to see the development trend of business under the turbulent industry

Technology

Yole Developpement, an international market research firm, has updated its report on the IP outlook for the MICRO LED industry, stating that there are currently more than 8,900 patents for MICRO LED filed by nearly 480 organizations. By 2020, 40% of patent families will have been disclosed.

Micro LED is a new milestone of micro-spacing LED, which gradually increases the resolution per unit area and has ultra-high definition display capability. It has become a hot spot in the industry in recent years and a strong competitor in the future display technology.

Application

The development of LED small-pitch will accelerate towards MICRO micro-pitch LEDs.

LED made in China accounts for 80%, which has a very obvious advantage in the R&D and manufacturing of LED industry. In 2019, various manufacturers have launched products below P1.0, most of which are P0.9 products. At present, it is in the early stage of application.

However, due to the sudden impact of the epidemic in 2020, the user budget will be reduced, and the penetration of MICRO micro-spacing LED will slow down. It is estimated that the sales volume of MICRO micro-spacing LED will account for 6.3% in the whole year, which will still be dominated by 0.9 project applications. Although the epidemic situation has an impact on the penetration speed of micro-spacing, it does not affect the enthusiasm of enterprises in research and development and investment. The competition in various industrial chains is more intense. No matter from chip technology, packaging technology or substrate technology, there are various technological routes competing with different spacing, such as micro-spacing LED (P0.4-P0.9mm),

The chip technology has forward assembly, half flip, flip technology, the packaging trend has forward flip COB, SMD, IMD, etc., the application of the substrate in addition to the traditional PCB also has TFT (only COB application) to join; The intensification of competition in various industrial links can more powerfully promote the development of the market.

The industry is working hard on micro-pitch LED display (market below P1.0). With the gradual decline of point spacing, the resolution problem of LED vendors will be solved. Micro LED technology is becoming mature and is expected to become the mainstream direction of the new generation of display technology. Global consumer electronics giants, display panel enterprises, LED display enterprises, LED chips and closed testing enterprises have begun to focus on investment layout in this field, the speed of technological progress is accelerating, the era of LED display application is coming.

Policy

Accelerating digital development and building a digital China. With the advance of 5G+8K era, more and more ultra-high definition display, big data processing, remote digital communication has been applied in all walks of life, the construction of digital economy, digital society, digital government has become a new benchmark in the digital age.

During the NPC and CPPCC sessions in 2010, the Fourteenth Five-Year Plan for National Economic and Social Development of the People's Republic of China and the Outline of the 2035 Vision Goals (draft) was proposed to welcome the digital era, activate the potential of data elements, promote the construction of a network power, and accelerate the construction of digital economy, digital society and digital government. Digital transformation will drive the transformation of production mode, life style and governance mode.

With small spacing led display industry progresses day by day, the distance between the led display screen as a visual display terminal equipment, digital terminal experience of digital society, the government function, in recent years, with the popularity of large screen display, more and more industry began to enter the process of digitalization construction, as the starting year of difference,

Digital construction will benefit more industries. After "Sky Net City" and "Visionary Project", new urban construction will be carried out, not only in the government industry, but more and more livelihood projects will also enter the digital process.

Capital

Large screen Mosaic field: two different market melodies, accelerated LED replacement LCD.

Between 2020 and 2021, the cost of rest of materials (ROM) other than LCD TV panels (open cell) will increase by 30-50%.

Most LCD TV panels are shipped as Open Cell (OC) from the panel manufacturer to the TV or backlight module (BMS) manufacturer. Panel OC is the most important cost factor of LCD TV.

However, other LCD TV REST OF COST (ROC) is also critical for LCD TV manufacturers and brands.

LCD TV OC prices have risen rapidly in the past 10 months due to limited production capacity and component shortages. LCD TV OC prices rise, making LCD TV manufacturers and brands struggling to profitability.

Compared with LCD manufacturers, which are limited by international upstream manufacturers, the main upstream enterprises of LED industry are all in China. Therefore, under the current international environment of epidemic situation and trade friction, it is the first choice for LCD manufacturers to master the core technology of LED industry.

As for the substitution relationship between LED small spacing and LCD splicing, comprehensive research has been carried out in the past from multiple dimensions (application area, optimal viewing distance, price multiple, project budget, etc.). However, with the fluctuation of the panel industry (SDC will close the LCD production line, LGD will close the Korean production line),

As a result, the overall production capacity of 8.5/8.6 generation line at the end of the year will be reduced by 25% compared with that at the beginning of the year. The supply capacity at one end is declining, while the demand at the other end is gradually recovering, resulting in the overall supply and demand tension of the panel; The same is true of the relationship between supply and demand of commercial display. LCD is currently under tight supply and demand, and the price continues to rise, while LED is in sufficient supply, exports to domestic sales, fierce competition, and the price continues to fall. The opposite price trend accelerates the reduction of the price multiple of the two, and adds a factor that affects the substitution of LED with small spacing for LCD.

LED small spacing different spacing price VSLCD splicing sub patchwork low light product price multiple comparison (per square meter)

Source: Discien

As the industry's leading large screen display and splicing control overall solution provider, Voury Zhuohua constantly breaks through the technical bottlenecks, continues to track the world's cutting-edge technology development, concentrate on the research of MINI LED, Micro LED technology development and combined with COB packaging technology, continuous innovation in the field of COB packaging LED display. Launched the Black Crystal series of COB encapsulated LED display products, covering a variety of specifications P0.6, P0.7, P0.9, P1.2, P1.5, P1.8, can meet the needs of various scenes. Different scenes require different display products of different technologies to bring the best experience to users.