China’s leading television manufacturers have been actively unveiling their new Mini LED TVs. On August 20, Changhong introduced the world’s first Mini LED TV with over 20,000 zones at Dongfeng Space City in Jiuquan, China. While the online price remains unknown, its superior audio-visual capabilities suggest that it targets the high-end market and will likely be priced accordingly. Then, on August 28, Konka launched its new Mini QD-LED R7 series, available in 65, 75, and 95-inch models, starting at approximately $1,370. On the same day, TCL unveiled its 115-inch X11G Max, a QD-Mini LED TV boasting a peak brightness of 5,000 nits, with an introductory price of around $10,950.
According to the latest data from industry insiders, branded TV shipments in China totaled 17.115 million units in the first half of 2023, reflecting a 0.5% decrease compared to the same period last year. However, Mini LED TV sales have surged, accounting for over 10% of retail sales during this year’s June 18 shopping festival, a strong year-over-year growth of 6.9%.
The Rise of Mini LED Technology
Mini LED technology, which has seen continuous advancement in recent years, is emerging as a mainstream innovation in the TV market. Earlier this year, Xida Electronics released a groundbreaking 120-inch 4K Mini LED TV using state-of-the-art COB (Chip on Board) integration, creating significant buzz in the sector. The launch of three new Mini LED products within just eight days underscores the industry’s commitment to this technology. But does this signal a shift toward large-scale production for Mini LED TVs? What factors are driving their rapid growth in the first half of the year? A deeper examination of both the technology and strategy can shed light on the trajectory of China’s Mini LED market.
Advantages of Mini LED Technology
As a next-generation display technology, Mini LED surpasses traditional LCDs in brightness, contrast, and color accuracy, making it a critical innovation for the future. Mini LED backlighting significantly enhances liquid crystal panels, providing a more affordable option that rivals the display quality and design of OLEDs. Moreover, Mini LEDs are easier to mass-produce, offer a longer lifespan, and consume less power. Paired with flexible substrates, Mini LEDs can mimic the curved displays of OLEDs while offering greater reliability.
China’s Commitment to Display Technology
China is leading the way in pioneering display technologies. Public records show that Mini LED TV sales in 2022 soared to 395,000 units, marking an impressive year-on-year increase of 385.3%. As of 2023, China has five brands ranked among the global top 10 TV manufacturers by shipment volume. This strong momentum in Mini LED displays continues unabated, with numerous companies in the Mini LED value chain highlighted in key project lists by several Chinese provincial governments for 2023.
For example, Anhui’s priority projects for 2023 include the “BOE Mini LED (Hefei) production line project” and the “6th generation touchscreen Mini LED backlight panel project.” Meanwhile, Guangzhou’s key construction project plan for 2023 features the Guangzhou Huaxing Photoelectric 8.6th generation oxide semiconductor display device production line project, a flagship venture with a total investment of $48 billion dedicated to high-end IT products and professional display liquid crystal panels.
Shandong’s significant projects for 2023 also include noteworthy initiatives such as the new materials-integrated Mini LED backplate project and the Yuanxu Semiconductor next-generation Micro LED semiconductor integrated display vertical integration manufacturing project.
Expansion of Mini LED Investments
The momentum behind Mini LED ventures is evident, with new developments continuously being announced. Chuanyue Optoelectronics’ Mini LED display module manufacturing project is officially underway; Skyworth’s Wuhan Mini LED tech park is now complete; and Vogtec has launched its investment in the Hui Chen Electronics Mini LED and high-end LCD backlight module industrial park.
This surge in investment across various regions highlights the growing competition around innovative Mini LED display technology. Industry forecasts predict that Mini LED panel shipments will reach 24.47 million units in 2023, and by 2026, this number is expected to exceed 37 million. Within the display sector, the penetration rate of Mini LED backlighting is experiencing substantial growth, rapidly expanding into professional markets such as conference rooms, cinema screens, and film production.
Challenges and Opportunities for Mini LED Adoption
Despite its promise, the premium pricing of Mini LED technology suggests that affordability remains crucial for broader market adoption. Since Mini LED backlighting requires more LED beads than conventional LCD backlighting, production costs are inherently higher, resulting in elevated retail prices. However, industry insiders have indicated that the production costs for Mini LED backlighting have already decreased by over 60% in the past two years.
Furthermore, Mini LED technology faces intense competition from other display technologies, like OLED and Micro LED, which are continually evolving to capture market share. However, as the market penetration of Mini LEDs accelerates and leading brands such as Apple, Huawei, Samsung, TCL, Hisense, and Xiaomi continue to release new Mini LED products, the market is poised for expansive growth. The era of fierce competition within the Mini LED segment is likely on the horizon.
Preparing for Mass Production
A successful phase of mass production requires a resilient supply chain capable of providing raw materials, manufacturing equipment, and efficient production processes that can meet high-volume demands. The stability of the Mini LED supply chain is vital for maintaining product quality, ensuring consistent supply, and enabling quick delivery. Additionally, with a steady stream of new Mini LED products entering the consumer electronics market, production and supply capabilities are witnessing significant improvements.
Conclusion
In summary, as Mini LED technology moves into mass production, it marks a milestone of both technological and market success. This phase typically means a broader consumer base will gain access to and benefit from the technology, fueling growth in related industries and providing fresh momentum to the LED display market. The companies that effectively leverage the dawn of the Mini LED era could be well-positioned to shape the future of the next decade.
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