Since May, the LED display industry has experienced a surge in prices, driven by the gradual depletion of inventory and the recovery of downstream markets.
Industry-Wide Price Increases
According to GGLED, companies across the LED ecosystem, including RGB packaging, downstream display manufacturers, and material suppliers, have experienced varying price increases. In some cases, prices have risen twice in just over ten days.
“Last year’s prices were unsustainably low, leading to losses. With inventory nearly cleared, price hikes are necessary,” a senior executive explained to GGLED.
Further research by GGLED reveals that several leading packaging and display companies plan to continue expanding their production capabilities this year.
This development creates new opportunities for Mini/Micro LED equipment companies specializing in packaging, testing, and repair. As a result, the equipment market is entering a new competitive phase.
Emerging Opportunities for Equipment Manufacturers
Recently, Taiwan-based LED equipment manufacturer FAVITE announced that its AI/AOI equipment, which gained traction in 2022 across Micro LED, semiconductor, and PCB industries, is expected to see increased shipments this year, becoming a mainstay of the company’s product line.
HOSON, a leader in Mini LED die bonding equipment, noted during a recent investor meeting that some clients are eager to expand production. The company is closely monitoring market conditions to adjust its production and business strategies accordingly.
On November 18, 2022, HOSON disclosed plans to sign a project investment agreement, aiming to develop a Semiconductor Intelligent Equipment Manufacturing Base in Zhongshan Cuiheng New District, with a total investment exceeding $83 million.
By February 15, 2023, HOSON’s subsidiary secured land use rights for $8.2 million, a significant move in expanding its high-end intelligent equipment manufacturing footprint.
Growth in High-End Equipment Manufacturing
High-end equipment manufacturing, particularly in Mini/Micro LED sectors, is becoming a priority for many manufacturers. Even during the first half of the year, when the LED industry was less active, equipment manufacturers, especially leading firms, reported strong growth.
For example, NAURA recorded revenues of $1.2 billion to $1.4 billion in the first half of the year, reflecting a year-on-year increase of 43.65%-64.41%. Net profit attributable to the parent company ranged from $258 million to $298 million, up 121.30%-155.76%.
Zhongwei Company reported revenues of approximately $386 million in the first half of 2023, up 28.13% year-over-year, with net profits between $149 million and $157 million, reflecting growth of 109.49%-120.18%.
Mini/Micro LED Industry Welcomes New Expansion Phase
Major manufacturers like Apple, Samsung, LG, Leyard, and LEDMAN Optoelectronics have recently launched a range of products featuring Mini/Micro LED technology, including TVs, AR/VR devices, smartphones, automotive displays, and monitors.
According to research from the High Industry Research LED Institute (GGII), over 100 new products using Mini LED backlighting were released in 2022, reflecting a vibrant market. This trend has continued in 2023, with more than 100 products launched in the first half alone.
GGII forecasts that by 2025, the global Mini LED market will reach $5.3 billion, with a compound annual growth rate of over 85%. By the same year, the global Micro LED market is expected to exceed $3.5 billion, and by 2027, surpass $10 billion.
New Investments and Projects in Mini/Micro LED Sector
To meet the increasing market demand, companies within the Mini/Micro LED industry are entering a new round of expansion. GGLED reports a significant influx of capital into the Mini/Micro LED display market since early 2023.
On January 31, FocusLightings was approved to issue shares to raise up to $170 million for Mini/Micro LED chip R&D and manufacturing expansion.
By February 10, HC SEMITEK‘s share issuance plan to raise $295 million was accepted, primarily for constructing a Micro LED wafer manufacturing and packaging testing base and supplementing working capital.
Additionally, several large-scale projects, such as the MiniLED display module manufacturing project in Shanxi Province, began production with investments of $35 million.
The NEWLED LED display core production base project, launched on February 18, involved an investment of $140 million, primarily focused on Mini/Micro LED screens.
The Zhongshan Unilumin Intelligent Manufacturing Base also commenced construction with a $308 million investment, aiming for an annual output value of $420 million once completed.
Continued Market Expansion
To capitalize on market opportunities, companies like AUO are increasing investments in automotive display technology, continuing to expand production lines at their Xiamen manufacturing base.
On March 28, GKGD held a launch ceremony for its COB new display project, with a total investment of $833 million in Changzhi.
This year’s intense investment and expansion in Mini/Micro LED are expected to accelerate, benefiting equipment manufacturers.
Profit Growth for Mini/Micro LED Equipment Producers
Changes in the market environment are creating significant business opportunities. As a vital part of the supply chain, Mini/Micro LED equipment is now a profitable sector.
According to GGLED, manufacturers like NAURA, GKG, HOSON, DAA, MENTO, Wanfuda, Ada, Hymson, and Lisu-LED are all making strides in Mini/Micro LED-related equipment, showing excellent performance.
Conclusion
From new product launches to strategic expansions, 2023 is set to be a landmark year for Mini/Micro LED technology and equipment. With industry leaders aggressively investing in innovation and capacity, the future of LED displays looks brighter than ever.
Information source: GGII
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