As we have noted previously 2021 will be the year that mini-LED backlights get some center stage time. A number of LED producers have been focusing considerable attention on developing the technology to produce such products with considerable attention on reducing costs. Since mini-LED technology is a progressive step in the development of LED backlighting, there is a relatively small increment in technological capability needed, which allows for considerable competition in an industry that has faced over-capacity.
The advantage for LED manufacturers and packagers is really one of premiums that can be embedded in the price of mini-LED backlight units, but in order to gain a cost advantage over the competition, volume and efficiency are needed. This will ultimately eliminate small producers, but at first blush, everyone wants to join the mini-LED party, including some that normally would be buyers rather than suppliers. As the mini-LED industry develops, more traditional LED manufacturers and packagers will try to lead the way, especially with the enticement of higher area based pricing, but while the desire for digging themselves out of an LED rut, producers might be expecting a bit more than the reality of the CE space can provide.
Epistar (2448.TT), the largest LED producer in Taiwan, is optimistic about its prospects for mini-LED sales in 2Q and 3Q of this year as they have received orders from several customers and have high expectations that if consumer response is good, the space will see explosive growth, especially with Apple expected to release its first mini-LED iPad sometime early this year and Samsung’s expectations for 2m of its TVs to be so equipped in 2021. That said, Epistar has also indicated that volume shipments of mini-LED chips have been deferred from 4Q 2020 to 2Q/3Q ’21 as the product must pass through significant certification requirements, given their smaller size and the need for high reliability.
Not to say that Epistar and others are incorrect in their overall assumptions about mini-LEDs, in fact just the opposite, but when capacity utilization for more generic LED production is high, as it is now, lines have to be shut down to convert them to mini-LED production, which can conflict with contractual commitments. Epistar will finish its line conversions to mini-LED oriented production in 1Q, which seems to be the reason for the delay in final qualification. Having the problem of deciding whether to continue to run a profitable line or take it down to upgrade for a (hopefully) more profitable product is a good one to have, but it’s a fine balance to maintain without over-promising or underperforming, and we doubt Epistar is the only LED producer facing that situation currently. “It just goes to show you, its always something” – Roseanne Roseannadanna.
The advantage for LED manufacturers and packagers is really one of premiums that can be embedded in the price of mini-LED backlight units, but in order to gain a cost advantage over the competition, volume and efficiency are needed. This will ultimately eliminate small producers, but at first blush, everyone wants to join the mini-LED party, including some that normally would be buyers rather than suppliers. As the mini-LED industry develops, more traditional LED manufacturers and packagers will try to lead the way, especially with the enticement of higher area based pricing, but while the desire for digging themselves out of an LED rut, producers might be expecting a bit more than the reality of the CE space can provide.
Epistar (2448.TT), the largest LED producer in Taiwan, is optimistic about its prospects for mini-LED sales in 2Q and 3Q of this year as they have received orders from several customers and have high expectations that if consumer response is good, the space will see explosive growth, especially with Apple expected to release its first mini-LED iPad sometime early this year and Samsung’s expectations for 2m of its TVs to be so equipped in 2021. That said, Epistar has also indicated that volume shipments of mini-LED chips have been deferred from 4Q 2020 to 2Q/3Q ’21 as the product must pass through significant certification requirements, given their smaller size and the need for high reliability.
Not to say that Epistar and others are incorrect in their overall assumptions about mini-LEDs, in fact just the opposite, but when capacity utilization for more generic LED production is high, as it is now, lines have to be shut down to convert them to mini-LED production, which can conflict with contractual commitments. Epistar will finish its line conversions to mini-LED oriented production in 1Q, which seems to be the reason for the delay in final qualification. Having the problem of deciding whether to continue to run a profitable line or take it down to upgrade for a (hopefully) more profitable product is a good one to have, but it’s a fine balance to maintain without over-promising or underperforming, and we doubt Epistar is the only LED producer facing that situation currently. “It just goes to show you, its always something” – Roseanne Roseannadanna.
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