At the packaging end, due to the production rhythm being constrained by upstream production capacity and directly affecting the output of downstream applications, the production capacity and technological progress at the packaging end are particularly concerned by all parties at this stage.

1. Relatively flat supply and demand

Packaging manufacturers represented by Guoxing Optoelectronics, Ruifeng Optoelectronics, Hongli Display, Jufei Optoelectronics, Tiandian Optoelectronics, and Jingke Electronics are actively promoting research and production in the field of Mini LED, and related expansion projects are also being actively promoted.

Last year, Guoxing Optoelectronics planned to invest no more than 1.9 billion yuan to build the Guoxing Optoelectronics Geely Industrial Park project, which will be used to build research and development and production sites, as well as advanced LED packaging and application production lines. At present, the Phase I and Phase II projects are on schedule. At the same time, the Advanced Business Park of Guoxing is also further expanding production and accelerating the expansion of production lines.

Since 2021, the orders for Mini LED backlight from Jingke Electronics have far exceeded the current production capacity of the line, and the company has been expanding its Mini LED backlight production line.

It is reported that Jingke Electronics currently has a production capacity utilization rate of about 70%. With the construction of new production lines, it is expected to gradually start mass production in Q3 2021. Based on the number of 65 inch Mini LED backlight televisions, the production capacity in Q4 2021 can exceed 10000 units.

Hongli showed that the company experienced a brief shortage of production capacity in 2020, but after the first phase of the Mini/Micro LED semiconductor display project was put into operation, the related issues were easily resolved.

At present, Hongli Display Mini backlight takes a 75 inch TV as an example, with a production capacity of 20000 units/month; Mini shows that with P0.9 as an example, the production capacity is 1000 square meters per month, and the capacity utilization rate is around 80%. In addition, the Mini/Micro LED Phase II project has also been launched and is expected to be put into use in 2022.

The POB order volume of Tiandian Optoelectronics has not yet stabilized to meet the full production demand, and it is expected that the demand will start to grow in Q2 this year. From Q3 to Q4, it will reach the full production demand, and the phenomenon of supply shortage is expected to occur in 2022.

Overall, at the current stage, the overall supply and demand relationship of the Mini LED industry is relatively flat, but terminal demand is growing rapidly. Therefore, it is necessary for manufacturers to accelerate the expansion speed, prepare sufficient relevant production capacity, and be ready for development.

2. Customization of orders as the main focus

In fact, the news of good orders for Mini LED has been circulating since last year, indicating that Mini LED has begun to contribute performance to relevant manufacturers. However, due to the fact that most of the orders are customized and the products are shipped in small and medium-sized batches, the revenue share of Mini LED is relatively low.

Taiwan factories such as Yiguang and Fucai Investment Control have all revealed that niche product orders such as Mini LED are mainly customized and diversified, with a relatively low revenue share. Mainland enterprises such as Guoxing, Ruifeng, Hongli, Jufei, Tiandian, and Jingke are no exception.

In 2020, the revenue of Jingke Electronics Mini LED products accounted for about 1% of the company's total revenue. The company expects that the proportion will gradually increase in 2021, and Q4 is expected to increase to 3-5%.

In 2020, the revenue of Tiandian Optoelectronics Mini LED POB products accounted for less than 10% of the revenue of backlight products. This year, the goal is to increase to 40-50%.

Hongli shows that Mini LED products are in the stage of mass supply, and their contribution to the overall performance of the group is relatively low. However, Chen Yongming stated that as the first phase of the new factory is put into use and gradually reaches production by the end of 2020, it is expected that Mini LED can achieve a relatively ideal amount in 2021.

Guoxing Optoelectronics has revealed that the new mass production plan for Mini LED POB has been recognized by many large factories and is cooperating with customers to supply in large quantities. It is expected to increase new profit growth points for the company in the future.

It can be seen that as one of the main growth drivers of the display industry this year, Mini LED's revenue share in 2021 may double compared to 2020. Meanwhile, as major packaging factories deepen their cooperation with downstream customers, Mini LED will soon be able to achieve more performance.

3. POB packaging is in place

Currently, Mini LED packaging solutions cover POB, COB, COG, and N-in-1. Mini RGB direct display part, with one COB and one N in one each; Mini backlight, POB, COB, and COG are three parallel solutions.

In backlight applications, the POB solution has been developed to this day, with relatively mature technology and process, and significantly improved production yield, making it a cost-effective backlight solution. From the released Mini LED NB/Monitor/TV and other backlight products in the market, there are many products that apply POB solution, and some products have already been mass-produced and sold.

As the widely recognized solution with the most large-scale production capacity, with further cost reduction, Mini POB backlight applications can quickly set sail.