Shenzhen MTC Technology Co., Ltd. said that LED prices are expected to rise slightly if the epidemic is under control

Affected by the epidemic in 2020, the demand for traditional lighting applications has been weak. As market prices have fallen to the bottom and the epidemic is expected to be under control in 2021, the market has recently reported that Chinese LED chip manufacturers have taken the lead in raising the prices of LED chips for lighting. Due to the chain reaction in the market and the large demand for panels, LED backlight chips are also expected to increase slightly.

LED chip manufacturer Epistar said that the fourth quarter is traditionally the off-season for the LED industry. It is expected that the overall terminal market application will resume pulling goods after 2021, and the shipment of new products will be in line with customer schedules.

Recently, when accepting institutional research, Shenzhen MTC shares stated that the external sales of Shenzhen MTC Semiconductor's LED chips have made good progress, and the shipment volume ranks first in the industry. Currently, it is in full production and sales, and some orders on hand need to be delayed due to production capacity reasons. The company's chip prices have been adjusted upward recently. On the one hand, due to the epidemic in the first half of the year, the export of lighting terminals was delayed. At present, exports have resumed and the Christmas peak season is coming, so demand is increasing; on the other hand, some domestic companies have withdrawn from the market, and some leading companies are also leaving the traditional lighting market, and the supply side is also in a tense situation.

In terms of products, MTC Semiconductor currently focuses on general-purpose LED lighting chips, supplemented by LED backlight chips. In the future, it plans to gradually upgrade lighting chips to high-efficiency and high-power, and increase the proportion of backlight and direct display products. Backlight chips are currently supplied to MTC Optoelectronics and companies in the same industry, and have passed the Korean supplier certification, and will gradually enter the Korean supply chain in the future. The red and yellow light chip project that was put into construction this year is expected to be gradually put into production next year.

In terms of Mini LED, Shenzhen MTC's Mini LED chips are already capable of small-scale mass production, and are expected to be shipped on a large scale in the future as downstream demand is released. The company's MOCVD equipment purchased by AMEC is the most advanced equipment in the industry, and it can expand Mini LED production without adding a lot of equipment.

At present, Shenzhen MTC is actively contacting Korean and domestic manufacturers to jointly promote the launch of Mini LED backlight TV products. Shenzhen MTC has been engaged in the research and development of Mini LED technology since 2016, and has gradually entered the field of LED display. By 2019, it has achieved full coverage of Mini RGB display, small pitch display, and outdoor display products. At present, Shenzhen MTC's Mini LED backlight and RGB display devices have been supplied in batches to international manufacturers and have been highly recognized by customers.

Based on its technical accumulation in flip-chip CSP products, quality control technology accumulated through long-term cooperation with international manufacturers, and highly automated and intelligent factories, MTC Optoelectronics is able to provide customers with high-quality and cost-effective products. Currently, the newly added production capacity of MTC Optoelectronics' Nanchang display factory has begun production, with a mass production capacity of 3000KK/month of display devices.

Mini LED is the most advanced display technology at present. The application prospects of new products are broad and the cost is very advantageous, especially for backlight applications based on LCD display. Apple will launch an iPad with Mini LED backlight in the fourth quarter of this year. The company is based on the TV ODM business and has unique advantages in backlight and whole machine OEM, as well as downstream brand introduction. The layout of upstream business links such as LED chips and packaging will further strengthen the company's business vertical integration and collaboration capabilities and overall product competitiveness.

The LEDMini backlight market has a bright future. It is expected that the use of Mini LED backlight on monitors will become standard in the future, and the same is true for tablets. In the TV sector, driven by companies such as Samsung and Sony, domestic companies will also follow suit. It is only a matter of time before the market starts to take off. In terms of direct display, the dot pitch of the display screen is iterating every year and getting smaller and smaller. Mini direct display is also growing. Currently, Mini direct display is usually used in high-end medical, military, monitoring and demonstration halls.