TrendForce’s latest projections reveal a rapid growth trajectory for the Micro LED chip market. Driven by the mass production of large displays and wearable devices, the market is estimated to reach a value of around $27 million in 2023, representing a year-over-year growth of 92%. With existing applications expanding and new ones emerging, the market is predicted to surge to approximately $580 million by 2027, achieving a compound annual growth rate (CAGR) of 136% between 2022 and 2027.
Growth Across Related Sectors
This rapid increase in chip value is expected to drive expansion in several related sectors, including transfer and detection equipment, glass and CMOS backplanes, and both active and passive driver ICs.
The widespread adoption of LED lighting applications, along with the rapid growth of the LED display screen market, continues to boost the size of the LED chip market. Micro LED technology, in particular, has significantly transformed the landscape. Known for its high brightness, contrast, refresh rate, and energy efficiency, Micro LED is widely regarded as the next major advancement in display technology.
What Are LED Chips?
At the core, an LED chip is a solid-state semiconductor device. The heart of the LED is a semiconductor wafer; one end is attached to a bracket, serving as the negative terminal, while the other connects to the power’s positive terminal. Made primarily from monocrystalline silicon, this chip is encapsulated in epoxy resin. Its primary function is to convert electrical energy into light.
Expansion of China’s LED Chip Market
From 2014 to 2019, the overall value of China’s LED chip market consistently increased. By 2020, mainland China’s LED chip production was valued at approximately $3.4 billion, marking a 10% rise from the previous year. In 2021, the market experienced a substantial surge, reaching $4.7 billion—a year-over-year growth of 38%, driven by ongoing capacity expansion by enterprises.
Data from GGII shows that the first half of 2020 saw reduced LED chip demand due to the pandemic, leading to a market decline. However, effective pandemic control in China during the latter half of the year, coupled with reduced overseas production, resulted in increased demand for LED chips in China. The total market value in 2020 was around $2.8 billion, reflecting a 2.7% decrease from the previous year. In 2021, with Chinese LED chip manufacturers focusing on high-end products and advancing in Mini LED chip production, the market size was preliminarily estimated to reach $3.5 billion.
Key Players Strengthen Market Position
Leading LED chip manufacturers have refined their strategies by focusing on high-value products and strengthening their presence in emerging sectors, particularly Mini/Micro LED, UVLED, and high-quality LED segments. In 2021, the top six LED chip companies accounted for over 85% of the total market revenue, further consolidating their dominance.
Future Trends in China’s LED Chip Industry
The growth trajectory of China’s LED chip industry is expected to center around three key areas: advanced manufacturing of LED chips, product innovation, and the expansion of application domains. Particular emphasis will be placed on sophisticated Mini/Micro LED technologies and innovations in smart and health lighting solutions.
Source: Qianzhan.com
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