In 2023, COB (Chip-on-Board) technology faced challenges, but by 2024, it has gained widespread recognition as one of the key industry trends, now regarded as a consensus.
- COB Scale Expansion: It is predicted that COB’s planned monthly production capacity could exceed 80,000㎡ by 2025.
- COB Penetration Speed: In the P1.2 pitch product market, the penetration rate has increased to over 60%. The penetration rates in the P1.5 and P0.9 markets have also seen further increases.
- Growth in the Number of Manufacturers: In 2023, there were only seven companies with a COB production capacity of over 200㎡. By 2024, this number has doubled to 16.
COB Capacity: Surpassing 50,000㎡ per Month in 2024
COB’s monthly production capacity (calculated in terms of P1.2 pitch) was 16,000㎡ in 2023, rising to 42,000㎡ in the first half of 2024. By the end of 2024, it is expected to reach 51,000㎡. The growth trend in both capacity and demand is expected to continue, with 80,000㎡ planned for 2025.
COB Shipments: Steady Growth Across Five Pixel Pitches
Let’s review the industry’s LED display shipments across different pixel pitches.
The P2.5 and larger pitch displays have maintained stable shipments but show declining value due to significant price reductions.
- P1.8 and P1.5 displays have seen steady annual growth in value, with prices declining at a stable pace while shipment volumes grow steadily, positioning P1.8 and P1.5 as mainstream products.
- For P1.2 displays, due to fierce competition among various technology routes, supply growth outpaces demand growth, leading to significant price drops. Consequently, while shipments have increased, the value growth is not as substantial.
- Displays with P1.0 and smaller pitches have seen an increase in demand for high-end displays in 2024. As the previous P1.2 pitch products decrease in price, some high-end budgets have shifted toward P1.0 and smaller pitches, driving significant value growth.
Next, let’s examine COB applications at various pitch levels. Currently, COB is mainly used in five pixel pitches: P0.7, P0.9, P1.2, P1.5, and P1.8. From a shipment area perspective, P1.2 accounts for 51.46%, and P1.5 and above contribute 25.9%. However, in terms of value and the use of Mini LED chips, P0.9 and P0.7 together account for 37.73% and 43.05%, respectively. This indicates that the value of different COB modules increases in the following order: P1.5, P1.2, P0.9, and P0.7.
COB Manufacturers: 16 Major Players and Rapid Expansion
In 2023, seven companies had a COB production capacity exceeding 200㎡, and by 2024, this number has grown to 16. Among the leaders in production capacity and shipments, VMTC and HCP Technology stand out. Other companies, such as Unilumin and GKSX, have also rapidly increased their COB production capacities.
As of December 2023, VMTC‘s monthly production capacity reached 10,000㎡. By October 2024, this increased to 20,000㎡, making VMTC the world’s largest COB producer, a major driver of COB technology’s large-scale development.
HCP Technology, which has maintained full-load production and sales, expects to reach 10,000㎡ monthly capacity by the end of 2024. In addition to P1.2 applications, HCP Technology is a key player in the P1.0 and smaller pitch markets, with shipments exceeding 10,000㎡ from January to October 2024.
Summary
In 2024, COB technology demonstrates significant advantages in innovation, production capacity, industry chain maturity, cost-effectiveness, and market recognition, emerging as a crucial force in the LED display industry.
However, the overall production capacity of the LED display industry has exceeded market demand, leading to an oversupply in 2025. Intense competition is expected as LED display manufacturers strive to maintain their market share.
In the coming years, COB will face the following three major challenges:
- Cost-effectiveness in Large-Pitch Applications: Ensuring product quality while managing costs and improving yield in P1.5 and P1.8 applications.
- Expansion of the P1.0 and Smaller Market: The market for P1.0 and smaller pitches is not yet fully developed and requires further demand stimulation.
- Technological Competition: Intense competition from other technologies means COB must innovate continuously to maintain its competitive edge.
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