Mini LED backlight demand is strong: Lextar will double its production capacity by the end of the year, Epistar will increase production by 50% next year

On August 13, the leading LED manufacturer Fucai Investment Holdings held a press conference, and its subsidiaries Epistar and Lextar are optimistic about the market prospects of Mini-LED. Currently, Mini LED backlight is booming, and its application areas are also expanding. In response to the growth in demand, Epistar will increase its production capacity by 20% in the first quarter of next year, and its annual production capacity target must grow by 50% to meet customer demand. Lextar will double its relevant production capacity by the end of the year.

Juheng.com reported that with the increase in Mini LED shipments, Fucai's related revenue share in the second quarter of this year has risen to 20%. Among them, Epistar's current annual Mini LED production capacity has reached 1 million 4-inch pieces. Chairman Fan Jinyong said that since April, it has received a lot of Mini LED backlight product development projects, including TVs, large-size LED displays, etc. After American brands launched related terminal products, Mini LED applications are booming.

In response to the continued growth in demand, Fan Jinyong said that production capacity will be increased by improving yield and optimizing production efficiency. It is expected that Mini LED production capacity will increase by an additional 20% in the first quarter of next year. From the perspective of client demand, Mini LED production capacity must increase by at least 50% next year to meet demand.

Fucai CFO Zhang Boyi emphasized that they will start with existing resources, such as Lextar and Epistar China's upstream epitaxial wafer or grain production capacity. After the equipment benefits are maximized, if the production capacity is still insufficient, additional capital expenditure will be made.

除晶电看好Mini LED市场前景外，隆达董事长苏峯正也表示，美系大品牌推出相关产品后，其他笔电厂也积极设计导入Mini LED背光，与客户合作的项目相当多，在大型电视、显示器等也有开案进行中，小尺寸的汽车导航面板、甚至尺寸更小的高阶户外消费性产品客户，也在设计导入阶段。

苏峯正认为，目前Mini LED背光需求持续加温，应用面也向外扩大，对于非苹阵营导入相关产品乐观看待，也因客户需求强劲，隆达将启动相关扩产计划，年底前Mini LED背光产能会增加一倍，盼明年第一季就能贡献营收。

As is known in the industry, MiniLED is a transitional product of Micro-LED, and its application in the display field is mainly divided into two categories. One is active MiniLED display, which is called MiniLED direct display. It can not only make up for the disadvantage of OLED screen burn-in, but also has advantages such as longer display life and better HDR effect. However, due to the high manufacturing cost of MiniLED direct display, there are relatively few manufacturers that mass-produce it.

Another type is to use MiniLED as the backlight source of LCD. Relevant manufacturers pointed out: "MiniLED backlight combined with LCD can be comparable to OLED in display color, with better cost performance and service life. It is a solution that meets mid-to-high-end needs and can restrict the penetration of OLED to a certain extent."

This year, many manufacturers have launched MiniLED products. After TCL released its MiniLED gaming monitor, Huawei released three MiniLED smart screens, and Samsung will also release the Odyssey Neo G9, a curved gaming monitor equipped with MiniLED technology. Apple is likely to release new products such as new MacBook laptops equipped with MiniLED displays this fall.

According to reports, in order to ensure a stable supply of MiniLED screens, Apple has also invested $200 million to expand four new production lines for TSMC to expand the production capacity of its Dongguan factory. TSMC is the main supplier of Apple's MiniLED modules, and Apple's investment will increase the monthly production of 700,000 to 800,000 MiniLED components for TSMC.

The accelerated deployment of terminal manufacturers will also drive the industry chain to continue to increase investment. According to incomplete statistics from Jiwei.com, 60 domestic companies have deployed MiniLED-related products, including LED manufacturers such as Sanan Optoelectronics, HC Semitek, Ruifeng Optoelectronics, Jufei Optoelectronics, and Nationstar Optoelectronics, as well as manufacturers in sub-sectors such as Mingwei Electronics, Fuman Electronics, Luxshare Precision, and Oscon.