Behind becoming the largest shareholder of Qianzhao Optoelectronics, what kind of layout does Hisense reveal?

As a domestic TV leader, Hisense has maintained the first place in domestic sales for 18 consecutive years; And Qianzhao Optoelectronics is one of the leaders in the domestic LED industry. In the end, what makes Hisense look at the upstream enterprise Qianzhao Optoelectronics, and reveal what planning it has in the industrial layout?

Major companies are vying to lay out Micro LED technology

At present, the display panel technology change is at the crossroads of industry development, LCD, OLED, Mini LED, Micro LED and other display technologies are competing for development. Among them, Micro LED is placed on high hopes, known as the ultimate display technology in the 2D era, and the application field covers public information display, TV, in-vehicle display, wearable devices and other terminal displays.

Micro LED display technology is better than LCD and OLED in terms of contrast, energy consumption, response time and other functions. On the whole, Micro LED is not only thinner than LCD and OLED, but also has the advantages of better luminous energy efficiency, higher resolution, wider operating temperature range and longer product life compared with OLED, which is also self-illuminating.

Global Micro-LED Output Value Forecast (Source Omdia)

Market research agency Omdia predicts that the micro LED global market will grow rapidly in the future, exceeding $10.5 billion in 2027, with a compound annual growth rate of 126%, and the market prospect is broad. Companies have also laid out: Google, Facebook, Apple, Samsung, BOE and other companies have invested in or acquired Micro LED startups to strengthen their technical strength in this field; Innovative small enterprises such as Mikro Mesa, Plessey, and Zichuang Technology have grown rapidly through financing and made great progress in huge transfer, backplane drives, device preparation, etc.; Sanan, Jingdian, HC Semitek and other traditional LED companies through mergers and acquisitions or cooperation with display giants, actively cut into the production and research and development of Micro LED devices, began to invest in large amounts of frequent investment in 2019, and more than 90% of the investment came from domestic manufacturers, opening a research and development boom and producing a large number of results.

In the view of relevant industry insiders, this stage is the golden period for investment in development, and if you miss the present, there may be a higher entry threshold in the follow-up.

The development of Micro LED technology is an important strategy of Hisense

It is understood that the development of Micro LED technology is also an important strategy for the upgrading and transformation of the TV industry proposed by Hisense. In terms of technology, Hisense has a diversified technical route layout combination, and the product portfolio layout of different display technologies such as laser display, ULED, OLED, Mini LED, Micro LED, etc., lays the foundation for sustainable development. Among them, Micro LED display is the key layout route of Hisense's future business increment, AndEnse has gradually increased its capital investment in Micro LED since 2020, and has now mastered the core technology of Micro LED.

In 2022, Hisense invested 899 million yuan in Qianzhao Optoelectronics, accounting for 11.93% of the shares, becoming the largest shareholder of Qianzhao Optoelectronics. Qianzhao is a leading solution provider and chip manufacturer in the field of DOMESTIC LED chips, and ranks third in China in terms of revenue in 2020, second only to Sanan and HC Semitek. At the end of 2020, Qianzhao Optoelectronics invested 1.15 billion yuan in the layout of Micro and high-efficiency LED chip research and development and manufacturing projects, and now has an annual output of 6.36 million micro LED chips and high-efficiency LED chips.

For Qianzhao Optoelectronics, Hisense's strategic shareholding not only strengthens the position of Qianzhao Optoelectronics in the LED market, but also effectively opens up the upstream and downstream of the industrial chain and expands the competitiveness and influence of both enterprises. These will enable Qianzhao Optoelectronics to win the market opportunity in the process of Micro LED industrialization. For Hisense Vision, Hisense has chip technology, system development, picture quality technology accumulation, product differentiation capabilities, and Hisense Group diversified industrial layout, with ecological integration capabilities, Hisense to dry photos as a platform, through the introduction of funds and technology for Micro LED to provide innovative applications, can better plan and guide the Micro LED industry.

Entering the main dry photoelectric will accelerate the development of the LED industry

With the strong support of national policies and the unremitting efforts of industrial chain enterprises, Micro LED has entered a new stage of high-quality rapid development, and the industrial pattern will also change. It is reported that in addition to applying Micro LED technology to the traditional home TV industry, Hisense is also vigorously expanding the B2B industry.

At present, Hisense has a company focusing on the field of commercial display - Hisense Commercial Display, after several years of layout, Hisense Commercial Display has a complete LED product line, its products include Micro LED all-in-one machine, small-pitch LED all-in-one machine, COB small-pitch LED, LED module, etc., and the cooperation between Hisense and Qianzhao Optoelectronics has injected new vitality into Hisense in the vigorous development of the B2B industry.

Nowadays, Micro LED has won the favor of many enterprises and entered the acceleration stage, which is expected to become a growth point that cannot be ignored in the industry. Undoubtedly, Micro LED will be an emerging industry with the highest certainty and the greatest room for development in the future. After Hisense's investment in Qianzhao, it will go hand in hand with LED backlight and LED direct display, and it is certain that Hisense has a stronger competitiveness among many Micro LED manufacturers in many micro LED manufacturers through cooperation with the upstream LED chip leader Qianzhao, especially in the micro LED outbreak period.