With the rapid rise of Mini-LED technology in the display industry, the global display market is undergoing a technological revolution. Mini-LED, with its advantages of high brightness, high contrast, and low power consumption, is becoming the mainstream choice in multiple fields, including televisions, displays, and automotive displays. As market demand sharply increases, the production capacity and technical level of Mini-LED are continually improving, creating unprecedented development opportunities for the entire industry.
On January 3, Hongming Technology Co., Ltd. (hereinafter referred to as Hongming Technology) announced the successful completion of the Phase II project of its LED/Mini-LED new display light source production base. The project, located in the Lu’an Economic and Technological Development Zone in Anhui, has a total investment of ¥200 million ($27.5 million). The project has added three high-speed production lines, with an estimated annual production capacity of 75 million LED light bars and 5 million Mini-LED COB light boards. One Mini-LED COB direct display OBA film production line has already completed customer audits and mass production trials. By 2025, the OBA film production capacity is expected to reach 150,000 square meters annually.
At the Phase II project completion ceremony, relevant leaders from the Municipal Bureau of Industry and Information Technology, Municipal Investment and Innovation Center, Municipal Science and Technology Bureau, and Development Zone Working Committee, as well as industry experts, partners, and company executives, gathered to witness this important moment. During the ceremony, Cheng Xu, Secretary of the Lu’an Development Zone Working Committee and Director of the Management Committee, delivered a speech and expressed congratulations.
In his speech, Qi Yunfei, General Manager of Hongming Technology, stated, “The completion of Phase II not only demonstrates Hongming Technology‘s long-term investment and commitment to new display technologies, but also reflects our determination to continue providing high-quality products and services to our customers. In the future, we will continue to increase our efforts in technological research and development to empower the industry.”
The successful completion of Phase II not only enables Hongming Technology to continually meet the growing demands of its customers but also enhances its delivery capability in direct display and OBA die-cutting fields, providing more customized solutions for clients.
1. A Success Story in the Transformation of the “Trade-Industry-Technology” Model
Against the backdrop of global industrial chain restructuring and the China-U.S. technology competition, the display industry is undergoing a profound transformation.
Founded in 2021, Hongming Technology quickly leveraged advantageous resources from shareholders such as Shanghai Hongming, Everlight Electronics, Exciton, and KMT Technology to decisively transform from a pure electronic component trade company to a manufacturer of optoelectronic devices. After three years of hard work, the company rapidly emerged in the optoelectronics manufacturing field. According to Hongming Technology, “At the beginning of its establishment, the company faced the choice of whether to switch industries or focus on the display industry. We ultimately decided to root ourselves in the display industry and follow the ‘trade-industry-technology’ transformation path to enter the manufacturing sector.”
Since its establishment, Hongming Technology has rapidly risen in the optoelectronics manufacturing field thanks to its strict quality management system, and it received the High-tech Enterprise Certification in 2023, further enhancing its industry competitiveness. In Q1 of 2024, the company completed a strategic restructuring with Everlight Electronics and gained honors such as a digital workshop, smart factory, and provincial-level specialized and innovative enterprise, laying a solid foundation for future growth.
Currently, Hongming Technology has 17 production lines, with its core business focusing on IT display solutions, specializing in the production of LED light strips, Mini-LED COB and POB light boards, and OBA film cutting. The company’s products are widely used in fields such as laptops, televisions, and automotive displays. It is reported that Hongming Technology has captured 8%-10% of the global laptop market and 14%-16% of the desktop monitor market. Moreover, the company’s products are gradually gaining more market share in automotive displays and televisions. Hongming Technology’s clients include well-known domestic and international companies such as BOE, TCL CSOT, AU Optronics, LG.
Shanghai Hongming Electronics, focusing on optoelectronic device trade, has provided Hongming Technology with strong market expansion support through its vast market network. Meanwhile, Everlight Electronics, a global leader in the LED industry, has provided crucial technological support to the company in LED and Mini-LED technology research and industrialization.
2. Mini-LED Holds Huge Market Potential
With the rapid development of Mini-LED technology, its applications are gradually expanding from television backlighting to automotive displays, smart wearables, and other fields. Behind this technological revolution, market competition is becoming increasingly fierce, but it also holds enormous market potential.
The market penetration rate of Mini-LED backlighting technology will continue to rise, especially in the television and automotive display sectors. In the first three quarters of 2024, Mini-LED TV sales penetration in the Chinese market surpassed 10%, with a year-on-year growth of 4.4 times. It is expected that by the end of 2024, the penetration rate of Mini-LED TVs will further rise to 12%, gradually replacing traditional LCD technology and becoming mainstream in the market.
Hongming Technology has been engaged in Mini-LED technology research and development for several years. Leveraging nearly 20 years of experience in the optoelectronics display field, the company has launched a series of competitive Mini-LED products. By introducing advanced manufacturing processes and automation equipment, it has significantly improved production efficiency and quality control capabilities. It also provides customized production based on market demand, further enhancing customer loyalty.
Currently, Hongming Technology’s Mini-LED product line covers multiple fields such as IT, TV, smart wearables, and automotive displays, fully showcasing the diversity of its products and the comprehensiveness of its technology. Through the integration of global supply chain resources, the company has strengthened cooperation with leading customers and established long-term partnerships with major domestic television panel manufacturers like TCL CSOT, BOE. These brands dominate 94% of the domestic Mini-LED TV market, with Hongming Technology’s customized Mini-LED backlight modules and light sources playing a key role.
In addition, with the rapid development of intelligent cockpits and the new energy vehicle market, demand for automotive display technologies continues to rise. Mini-LED, as a key display technology, is rapidly expanding in this sector. Hongming Technology, with its long-standing technical accumulation and high-quality products, has successfully gained recognition from several automotive Tier 1 suppliers and end customers, including SAIC Motor, Ribos Group, and Visteon, laying the foundation for further expansion in automotive displays.
3. Driving “Optics, Mechanics, and Electronics” Integrated Display Solutions
Facing rapidly changing market demands and intense industry competition, Hongming Technology has defined its future direction, focusing on high-value-added Mini-LED backlighting and automotive display sectors, aiming to promote the implementation of integrated new display solutions. The company plans to invest ¥40 million ($5.5 million) by 2025 to add three Mini-LED production lines, further boosting production capacity and consolidating its technological advantage in the optoelectronic display field. At the same time, the company plans to collaborate with Everlight Electronics to enter the third-generation semiconductor power module business, driving business diversification.
With the increasing market penetration of Mini-LED, Hongming Technology believes that the next 3 to 5 years will be a critical window for the industry. At present, the global penetration rate of Mini-LED in TV and automotive displays is approximately 3%, but with the growing demand for display products and continuous investments from upstream and downstream supply chains, it is expected that the penetration rate will rise to 8%-10% in the future. Based on this, Hongming Technology will actively push forward the integration of optics, mechanics, and electronics, integrating core technologies such as LED packaging, optical materials, driving ICs, and algorithm design, covering applications in IT displays, smart wearables, and automotive displays, providing customers with Mini-LED integrated solutions and gradually transitioning from a product supplier to an industry technology leader.
As Mini-LED technology continues to mature, market demand is accelerating. It is predicted that by 2025, shipments of Mini-LED backlight chips will reach 6.26 million units, a significant increase compared to approximately 890,000 units in 2021. Through continuous technological innovation and deep market expansion, Hongming Technology is expected to seize more market opportunities in this growth wave.
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