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LED display demand growth is strong, Mulinsen / Guoxing Optoelectronics / Yiguang continue to expand production capacity
The global LED industry is gradually recovering, and some product prices have been increasing. Although the overall LED production capacity is still in oversupply, some application demand is rising, resulting in tight supply of LED chips, especially for small-pitch display applications. It is estimated that the market size will grow by 30% to 40% in 2017, and will maintain steady growth in the next three years, attracting cross-strait LED manufacturers to continue to expand production capacity and strive for business opportunities. In recent years, the mainland small-pitch display application market has played a leading role in driving growth. The LED industry pointed out that as the market scale expands, the demand for small-pitch LED packages will grow, and the LED specifications will continue to improve, and the particle spacing will gradually shrink, requiring each unit. The number of packages is rapidly increasing, making the demand for small pitch LED packages highly prone to growth. Due to the strong demand for small-pitch display, the cross-strait LED industry continues to expand its production capacity. Among them, the mainland LED packaging leader Mulinsen will expand its production capacity target to 100 billion to 150 billion in 2017, and the focus will be on small-pitch display applications. , accounting for about 60 to 70% of new capacity, and another 40% of new capacity is used in LED lighting demand. Mulinsen estimates that the demand for LED chips in 2016 is about 60 billion, which translates into about 20 billion LED packages. It is expected that the demand for chips will increase to 90 billion to 100 billion in 2017. Currently, Mulinsen is used for small-pitch display applications. The LED packaging capacity is about 10 billion, and the market share is about 50%. With the continuous expansion of production capacity in 2017, the 2017 target will increase the market share to over 60%. The mainland LED packaging factory Guoxing Optoelectronics has also started the LED package expansion plan. As for the mainland LED factory Jingtai, it will promote the expansion of the second phase project. With the accelerated expansion of the mainland LED packaging factory, the products will be in 2020 or 1010. High-end specifications, plus competitive prices, will continue to expand the market share. Taiwan's LED packaging manufacturer Everlight has been the largest supplier of small-pitch display applications in the world. In recent years, although the market share has been reduced, the main products have been pulled up to 0808 or 1010, and the new Miaoli plant has been commissioned. Capacity will also be concentrated in niche products, including small-pitch displays, automotive and invisible applications. Ye Weifu, chairman of Yiguang, said that he is optimistic about the high growth space of the small-pitch display application market. In 2017, the main growth momentum will lock in applications such as small-pitch display, automotive and infrared LED. Due to the improved resolution of small-pitch display, it has advantages in long-distance viewing, and the application of the product has expanded to cinema screens and military applications. Recently, Everlight received orders from Korean cinema operators, and product applications will be further extended to the high-end market. Hope to drive profitability in 2017 to continue to grow.