LED packaging new "bureau"

In the past two years, due to the decline in global economic prosperity and the impact of geopolitical conflicts, the growth rate of the global LED lighting market has slowed down significantly.

LED packaging, as the midstream link of the LED lighting industry chain, has also slowed down in the past two years. According to the statistics of the LED Research Institute (GGII) of the High Industry and Industry Research Institute, the output value of China's LED white light packaging in 2020 is about 66.55 billion yuan, a year-on-year decrease of 6.3%;

In 2021, driven by the export of general lighting, the display market picked up, and the rapid increase in mini backlight penetration rate, the LED industry as a whole warmed up.

Data from the LED Research Institute (GGII) also shows that in 2021, the output value of China's LED white light packaging will reach about 69.5 billion yuan, an increase of 4.4% year-on-year.

Recently, LED industry chain related enterprises have released the 2021 annual report, senior LED summarized the performance reports of 11 LED packaging listed companies, what is the result?

According to the report, under the impetus of strong downstream market demand, the overall revenue level of the above 11 LED packaging listed companies generally maintained steady growth, and only the revenue of Lianchuang Optoelectronics declined.

However, although the revenue of various LED packaging manufacturers generally maintained growth, nearly half of the enterprises increased their income without increasing profits, including Wanrun Technology, Lianchuang Optoelectronics, Jufei Optoelectronics, etc.

For the decline in net profit, the reasons given by each enterprise are mainly concentrated in the following aspects: asset impairment, increase in operating costs, and economic downturn.

Due to the difference in the proportion of the main business of each enterprise, Gaogong LED has made a separate summary of each LED packaging business. The results show that the revenue of 8 enterprises such as Dongshan Precision, MTC, Mulinsen, Guoxing Optoelectronics, Hongli Zhihui, Ruifeng Optoelectronics, Wanrun Technology, and Changfang Group has maintained steady growth, and only 3 enterprises such as Xiamen Xinda, Lianchuang Optoelectronics, and Jufei Optoelectronics have declined.

In recent years, the LED industry has gradually shown the phenomenon of mature traditional manufacturing technology and the imbalance between supply and demand of low-end production capacity, and high-quality resources have gathered to leading enterprises to form a development situation of strong and strong.

Coupled with the impact of the epidemic, it has brought about market changes such as a sharp increase in demand for export markets and fierce competition in the domestic market. At the same time, the prices of raw materials and supporting materials have also fluctuated sharply.

Under the baptism of great changes in the external environment, the LED industry has been continuously reshuffled, and the market concentration has been further improved.

According to the revenue scale of the LED packaging business of the above enterprises, it is mainly divided into three echelons: 5 enterprises such as Youshan Precision, MTC Shares, Mulinsen, Guoxing Optoelectronics, Hongli Zhihui and so on of 2 billion+; 1 billion+ have Lianchuang Optoelectronics, Jufei Optoelectronics, Ruifeng Optoelectronics, etc.; within 1 billion there are Xiamen Xinda, Wanrun Technology, Changfang Group, etc.

In fact, due to the relatively low market entry threshold, the lighting LED packaging business competition with the industry is more serious, and it has entered a mature stage at this stage. In order to avoid the Red Sea market, LED packaging companies have laid out emerging markets.

Since 2021, with the gradual maturity of technical processes and the further decline in costs, LED displays have gone hand in hand in the dedicated, commercial and residential consumer markets.

Small-pitch LEDs, Mini LED open video surveillance, conference rooms, virtual shooting and television, PDA, notebook computers, e-sports displays and commercial and many other application segments of the market, a variety of innovative products emerge in an endless stream; automotive LEDs, plant lighting LEDs, infrared / ultraviolet LEDs and other emerging applications of the market demand is also showing a rapid growth trend, related products in ultra-high-definition display and backlighting, smart medical, modern agriculture, new energy vehicles and other high-end applications are gradually penetrating, Drive the upgrading and transformation of the LED industry structure.

In addition, Mini/Micro LED, as a new generation of core display technology, has irreplaceable advantages and is gradually becoming the mainstream solution of the new display market.

Looking back at 2021, many leading enterprises in the industry have released related products, the industrialization application of Mini/MicroLED new display technology has entered a critical period, with the increasing number of investment enterprises, the scope of participation in the industrial chain continues to expand, under the joint promotion of the government, enterprises and funds, the development of the Mini/Micro LED industry will enter the fast lane.

Around the field of LED display packaging, LED packaging manufacturers such as Guoxing Optoelectronics, Dongshan Precision, MTC Optical Element, Crystal Platform, Jinko Electronics and so on have launched a layout and achieved phased results.

It is understood that in terms of Mini LED, the product layout of Guoxing Optoelectronics has achieved P1.5-P0.4 full series coverage; in Micro LED, it has successfully developed a high-consistency pixelated quantum dot color conversion color film preparation technology, which effectively solves the technical pain points of micro LED red light chip with low yield, low luminous efficiency and high difficulty in transferring huge amounts.

While stabilizing its leading position in small spacing, Dongshan Precision is also actively laying out the Mini LED market. At present, its Mini RGB, MiniLED backlight and other products have been shipped in batches.

The micro-pitch Mini LED display of MTC Optical Element Research strives to create the flip-mounted single-lamp LED F1010, F0808, F0606 series, and realizes the development and mass production of P0.6-P0.9 micro-pitch display devices.

The "backdrop" series of crystal platforms has grown into a large family, and coupled with the Mini LED backlight packaging solution, it has made its Mini/Micro LED product line more abundant.

Jinko Electronics has also possessed the design and development capabilities of Mini LED backlight solutions, and has formed a series of MiniLED backlight solutions suitable for TVs and car displays.

Around the field of LED lighting packaging, Guoxing Optoelectronics, MTC Optical Yuan, Changfang Group, Jinko Electronics, Xuyu Optoelectronics, Zhongshun Semiconductor, etc. have adjusted the bow to plant lighting, automotive lighting, health lighting, landscape lighting and other market segments, and through targeted cooperation and joint development with upstream chip suppliers and downstream customers, to provide high-tech, cost-effective LED products for end customers.