Overview of Production Capacity Expansion
On July 9, BMTC announced during an institutional survey that its COB (Chip-on-Board) production capacity has reached 16,000 square meters per month. With new production lines entering operation, the company expects to surpass a monthly capacity of 20,000 square meters by September.
This milestone reflects BMTC’s steady approach to expanding its production capacity, highlighting the ongoing technological iterations within the LED industry.
Strengthening Competitive Advantage through Capacity Expansion
Thanks to concerted efforts across the industry, the market for LED displays continues to grow. Mini LED and Micro LED technologies are rapidly moving toward industrialization, with applications increasingly penetrating the consumer market from the engineering sector.
In this evolving landscape, the market shows new characteristics in technology selection: As COB technology matures and capacity expands while prices decrease, COB is beginning to compete with SMD (Surface-Mounted Device) in the display market for pixel pitches below P1.2, with a gradual increase in penetration rates in the P1.5 to P2.5 range.
BMTC’s strategy regarding COB production capacity is seen as industry-leading. In 2023, the company established 900 COB production lines; by December 2023, its monthly capacity is expected to reach 10,000 square meters, and by the first half of 2024, it has already achieved a monthly capacity of 16,000 square meters.
Currently, BMTC’s shipment volume accounts for over 50% of the COB industry. With the announcement of reaching 20,000 square meters of production capacity in September, BMTC is set to further solidify its competitive edge in the COB sector and increase its market share.
Aiming to Become the World’s Largest COB Panel Manufacturer
Founded in 2021, BMTC has seen rapid growth over just three years, achieving notable advancements in technology, product penetration, and financial performance. According to its 2023 annual report, the revenue from COB display applications reached 541 million yuan, with a net profit of 35 million yuan.
BMTC’s rapid development is supported by the robust strength of the BMTC Group. The group possesses vertical integration advantages in the LED industry, mastering and reserving multiple core technologies in the manufacturing sectors of smart display products, communication products, and LED products.
To date, BMTC and its subsidiaries have obtained a total of 1,260 valid authorized patents, including 342 invention patents, 818 utility model patents, and 100 design patents, with 770 pending applications and 391 software copyrights.
BMTC Semiconductor operates upstream in the supply chain, achieving a production capacity that ranks among the best in the world, providing a solid foundation for BMTC’s development. Specifically, in a survey report released on July 9, BMTC indicated that the total production capacity of its chip business is about 1.1 million pieces in the first half of 2024, including 1.05 million gallium nitride chips (4-inch wafers) and 50,000 gallium arsenide chips (4-inch wafers).
Since 2021, BMTC Semiconductor has continuously optimized its product structure, shifting its focus from ordinary lighting chips to higher-value products, successfully transitioning to a chip manufacturer primarily offering high-margin lighting, backlight, and display chips.
With the advantages of vertical integration in the LED industry, BMTC has significantly reduced costs for its COB products. In 2023, the prices of its main pixel pitch products dropped by half to two-thirds compared to the previous year.
Additionally, the emergence of virtual pixel technology has further aided BMTC in reducing COB product prices. This technology can theoretically achieve resolutions equivalent to real pixels while significantly reducing the number of chips used. Currently, the company’s virtual pixel technology is relatively mature, making it difficult for the naked eye to distinguish the performance differences between virtual and real pixel products at certain viewing distances.
Looking ahead, BMTC aims to continue strengthening its R&D and market expansion efforts, moving toward its goal of becoming the “world’s largest COB panel manufacturer.”
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