1. Relationship between LCD, OLED, Mini LED, and Micro LED1. LCD (Liquid Crystal Display): The basic principle is that when liquid crystals are energized, they align in a structured manner, allowing the backlight to pass through; when not energized, the alignment is chaotic, preventing light from passing through. The backlight passes through the liquid crystal molecules and color filters to create a colored pattern. The light emission principle of LCD relies mainly on the backlight layer, which is usually composed of numerous LED backlights.2. OLED: This is an organic light-emitting display technology developed by Kodak and patented. Its principle involves placing an organic light-emitting layer between two electrodes, forming a screen made up of countless self-emitting bright points. OLED does not require a backlight layer like LCD screens, nor does it need a liquid crystal layer to control light output; it simply lights up when energized, resembling a screen composed of many small colored bulbs.OLED boasts advantages such as higher color saturation, self-emission, lighter weight, wider viewing angles, flexibility, faster response times, and lower energy consumption, with production costs significantly lower than LCD. OLED display technology is widely used in mobile phones, digital cameras, DVD players, personal digital assistants (PDAs), laptops, car audio systems, and televisions.3. Mini LED and Micro LED: With advancements in LED technology and increasing market demand, new display technologies represented by Mini LED and Micro LED have emerged. 1 millimeter (mm) = 1000 micrometers (um),Micro LED uses LED crystals ranging from 1 to 10 micrometers to achieve displays with pixel particles of 0.05 mm or smaller;Mini LED uses LED crystals in the tens of micrometers range to achieve displays with pixel particles of 0.5 to 1.2 mm.Small-pitch LED uses sub-millimeter LED crystals to ultimately achieve displays with pixel particles of 1.0 to 2.0 mm.The smaller the crystal level, the higher the technical requirements, resulting in better performance. It is reported that Micro LED consumes only 10% of the power of LCD and 50% of OLED. Additionally, compared to OLED, which is also a self-emitting display, Micro LED achieves three times the brightness under the same power, along with better material stability and no image retention.Therefore, the future trend in display development: From LCD to OLED, then to Mini LED, the ultimate winner should be Micro LED. Currently, OLED screens are beginning to mature, Mini LED is expected to explode in the next year or two, and the technology is not yet truly mature, while Micro LED will take even longer. Apple has begun to enter the Mini LED and Micro LED markets, and domestic manufacturers are also targeting this market, which has great potential for future market growth.
2. Current Industry LandscapeCurrently, the flat panel display market is still dominated by LCD, but the share of OLED is increasing year by year, continuously squeezing the LCD market. The current market’s LCD dominance is due to core technologies being controlled by a few overseas companies, making it difficult for OLED production capacity to explode quickly, which is a market choice due to severe OLED supply shortages, especially for small-sized AMOLED used in mobile phones. From the industry perspective, major panel manufacturers are investing heavily to accelerate the layout of OLED production lines.The competition pattern in the OLED market is monopolized by South Korea, with China catching up. South Korean manufacturers Samsung and LGD dominate the absolute leadership positions in small and large sizes, respectively, thanks to their monopolistic technologies and patents. Global OLED production capacity is mainly concentrated in South Korea, Japan, and Taiwan, and Chinese manufacturers have made the most investments and new production lines in OLED; after all production lines reach full capacity in 2020, South Korea will have 11 production lines above 5.5 generations, Japan 3, Taiwan 5, while China will have 15, thus China is expected to change the monopoly position of South Korea and Japan in panels, which also presents opportunities for domestic upstream raw material and equipment manufacturers.3. China Gradually Catching Up in OLEDThe biggest killer of OLED is its flexibility, with the development direction of flexible OLED displays being curved → foldable → rollable; currently, flexible OLED forms mainly consist of fixed curvature side bends, greatly improving the appearance of mobile phone screens. In the future, flexible OLED will further evolve into foldable and even rollable forms. It is predicted that by 2020, China’s OLED production capacity will account for about 28% of global capacity, becoming the second pole of global OLED supply.BOE’s Chengdu 6th generation flexible AMOLED production line was lit up and put into production on May 11 this year, and it will achieve mass production by the end of this month; The Mianyang 6th generation flexible AMOLED production line has also begun construction, with both production lines designed for a capacity of 48K/month. With the gradual production of these two flexible AMOLED production lines, BOE will establish a leading position in the flexible AMOLED field.Other companies include TCL Technology, Visionox, Lianhe Technology, OFILM, testing equipment company Jingtong Electronics and Jintuo Co., Ltd., cover glass company Lens Technology and South Glass etc.4. Layout of Mini LED, Planning for the FutureCurrently, the cost of Mini LED is 20% higher than OLED, but as the cost of Mini LED decreases, OLED’s market position will be replaced. Technically, only a few large manufacturers can achieve mass production of Mini LED, which will increase the concentration of the packaging industry. The rise of Mini LED poses new challenges to the entire LED industry chain; Mini LED is a benefit that only a few large packaging manufacturers can enjoy, which will further promote the concentration of the packaging industry.Some related companies are gradually laying out in this area, roughly as follows:San’an Optoelectronics: The company has begun mass production and sales of Mini LED a year ago, and the shipment volume has been increasing with the gradual arrival of key equipment; this business will be one of the company’s key development directions in the future.Jufei Optoelectronics: Mini LED is a new business the company is expanding, currently in the small batch sampling stage.Guoxing Optoelectronics: The company has mass production applications in 4K/8K Mini LED display products, and its P0.9 Mini LED display series, as the industry’s smallest pitch in mass production, has gained widespread recognition from mainstream display manufacturers.Ruifeng Optoelectronics: Mini-related technologies have been applied to mobile phones, televisions, tablets, VR, and various electronic products, closely cooperating with well-known domestic and foreign electronic companies to develop various Mini backlight and display product solutions, and has built the first Mini LED automated production line in China. The company’s Mini backlight products have begun to be shipped in small batches to multiple customers, and the company plans to further expand production lines.Hua Can Optoelectronics: The company maintains a leading global market position in the LED display chip field, and Mini LED products have been mass-produced in the market;Qianzhao Optoelectronics: Mini LED displays and Mini LED backlights have been sampled, and mass production will be achieved in 2019.Aoto Electronics: A domestic leader in Mini LED displays, having applied for 30 patents globally, and currently, all Mini LED products have achieved mass production.Zhouming Technology: The company achieved mass production of 4K 162-inch Mini LED products in early 2019 and completed the advanced AM driving technology research and development in the Mini LED field in the first half of 2019.Zhaochi Co., Ltd.: The company has developed Mini LED backlight and Mini RGB display product solutions, and is currently shipping small batches to multiple customers.Hongli Zhihui: The company has made significant breakthroughs in large-size panels and massive transfer technology in the Mini LED field, and has established strategic cooperation with transfer equipment manufacturers. In terms of production capacity, the company has several models supplying small batches, and some models are on the countdown to mass production.Wanrun Technology: The company mainly engages in LED light source device packaging and LED general lighting application businesses, being a leading provider in China that integrates research and development, design, production, and sales, providing high-quality LED light source devices and LED application lighting products as an “integrated” solution for customers.—————Disclaimer: This is merely a personal diary of the author’s understanding of the market and does not constitute investment advice; all views expressed in this article represent personal opinions and do not have any guiding effect! The stock market has risks; investment requires caution.
